Micron-Qimonda acquisition almost official; battle of DRAM giants continues




Josephine Lien, Taipei;
Meiling Chen, DIGITIMES


Micron's acquisition of Qimonda is almost official, according to market sources.
According to Micron's newest financial report, losses during the most recent fiscal quarter were about US$344 million, equivalent to US$0.45 per share. The company has seen continuous losses over the past seven fiscal quarters.
Although Micron reported huge losses, its merger with Qimonda has been successful negotiated with only an official announcement yet to be made, according to market sources.
After Micron and Qimonda are merged, Samsung Electronics, Hynix, Elpida Memory and Micron will make up the top-four contenders in the DRAM market.
Despite the ongoing industry slump, Samsung is insistent on not cutting back production, and may even increase output in a bid to squeeze more companies out of the market. Hynix' strategy is simply to defend its market share, while Elpida is expected to weather the storm thanks to the assistance of Powerchip Semiconductor Corporation (PSC) and Rexchip Electronics. Micron's successful implementation of its acquisition plans will help the company grow large enough to make it through the hard times, the sources added.