Memories are made of this

Memory chip maker Micron Technology and Nanya Technology have signed an agreement to create a new DRAM joint venture.


Memory chip maker Micron Technology and Nanya Technology, a division of the Formosa Plastics Group, have signed an agreement to create MeiYa Technology, a new DRAM joint venture.


As part of the joint venture, a 200mm Nanya manufacturing facility in Taiwan will be upgraded to 300mm technology starting this year, with the facility coming online for production in 2009.


In addition to MeiYa, both companies say that they will also jointly develop and share future technology.


Both parent companies will own 50 per cent of the joint venture initially, and each will contribute $550m in cash by the end of 2009 to get it off the ground.


The transaction is subject to customary closing conditions, including regulatory approval in Taiwan, and is expected to close within the next few months.