are to form a new company to manufacture NAND flash memory for use in consumer electronics, removable storage and handheld communications devices. The new company, IM Flash Technologies, will exclusively manufacture product for Micron and Intel.
Intel and Micron have also each entered into separate long-term agreements to supply Apple with a significant portion of each of their share of IM Flash Technologies’ NAND flash memory output. As part of these agreements, Apple is to prepay $250 million each to Intel and Micron.
Intel and Micron will initially contribute approximately $1.2 billion each in cash, notes and assets to the new company and plan a further a investment of around $1.4 billion each over the next three years to support the growth of the operation.
The company will be 51% owned by Micron and 49% owned by Intel. Production, expected in early 2006, will initially take place in manufacturing facilities located in