Micron Expects to Start Transition to 20nm Process Tech in Summer
Micron Technology is ramping up IM Flash Singapore (IMFS) facility without CapEx funds from Intel and will as a result get all the output of the fab. At the same time, the company is planning to start transiting to 20nm process technology in summer, 2011, amid Intel's gradual reduction of contribution into the joint venture in general.
"Intel is currently not participating with the CapEx in IMFS. We actually are pretty comfortable with that. Number one, we already have that in our financial models making assumption they are not going to participate. Secondly, we could really use the output for service center customers. [...] They have the ability to come in and participate in downstream cap expansion," said Steve Appleton, chief executive officer of Micron, during the quarterly conference call with financial analysts.
Analyst Gregory Wong from Forward Insights said that Intel currently has a 29% stake in IMFS and will get wafers from IMFS. But the market observer believes that future capital investments will be made primarily by Micron, which means the percentage obtained by Intel will decline. Intel and Micron are still partners in the U.S., though. Since Intel only uses flash memory to make its solid-state drives (SSDs), it does not need maximum possible production capacity and would rather save its money for times when it needs more flash.
Micron, by contrast, produces various NAND flash-based products and also sells its memory chips to smartphone makers and other customers. As a result, it will continue to aggressively expand its capacities and transit to newer process technologies so to boost output and further cut down production costs.
"We are happy with the way the 25nm ramp is going and we are in about full swing.[...] [We are] pretty comfortable with the NAND trajectory, and the 20nm that will come into play in the summer as well," Mark Durcan, the president and chief operating officer of Micron.
BOISE -- Micron Technology held its annual shareholders meeting Thursday and financial analyst Dave Petso says the Boise-based company had a great year.
"It has been an amazing turnaround for a company that lost a billion dollars last year to making a billion dollars this year," said Petso.
He says Micron has really moved itself into a competitive position and has almost $3 billion in cash. It's money that could be used to partner with a new company or buy out a competitor.
"But also chip prices are cyclical, and if they are not making money, they need to have that cash sitting in the bank so they can continue to make the necessary capital purchases down the road, even if they are not making the money quarter to quarter," said Petso.
Petso also said that Micron has hired several hundred people locally in the past year.
Micron Technology Inc., the largest U.S. maker of computer-memory chips, reported its fifth-straight quarterly profit as buoyant demand for products used in smartphones helped it withstand a slump in computer memory.
By Tiernan Ray
Shares of memory chip maker Micron Technology (MU) are up 9 cents, or 1%, at $8.37 in late trading after the company reported fiscal Q1 revenue and earnings per share below consensus estimates.
Revenue in the three months ended in November rose 32% to $2.3 billion, falling short of estimates of $2.37 billion, while profit per share of 15 cents was 13 cents less than expected.
Despite the miss, it’s conceivable there’s relief the results weren’t worse considering a significant oversupply situation in DRAM and big price drops, as reported today by DigiTime’s Jessie Shen.
A 23% drop in average selling prices for DRAM led to a 19% quarter-to-quarter decline in Micron’s DRAM revenue, despite a 5% increase in units shipped, the company said.
The company spent $570 million in capex during the quarter, and $635 million paying down debt. Micron ended the quarter with $2.4 billion in cash and investments and $1.3 billion in long-term debt.
IF applejack was fired?
Just a guess but I would suspect an immediate positive jump.
Could not put a number on it but definitely a positive for muuuuuuuuuuuuuuuupile.
NOW - possibility? under the current structure 0%.
applejack has riggend the whole system. BOD hand picked and selected by him.
HE is the CEO and COB. Could not get any better.