ST, Intel complete creation of memory venture
March 31, 2008 //
Intel Corp and ST Microelectronics NV have, as expected, signed the deal that combines the former's NOR flash memory business with the latter's NAND activities to form Numonyx B.V.
LONDON Intel Corp and ST Microelectronics NV have, as expected, signed the deal that combines the former's NOR flash memory business with the latter's NAND activities to form Numonyx B.V.
Announced last year and delayed by a few glitches, Numonyx will start operating immediately as the world's third largest supplier of non volatile memories, quoting figures from a recent In-Stat report, and the leading supplier of such memories to the mobile phones market.
The venture will also be the focus of the two chip makers' efforts in phase change memories.
Combined annual revenue will be approximately $3 billion.
"It is rare when a company starts in such a strong position," said Brian Harrison, chief executive officer of Numonyx. "The complementary nature of the two parent companies' products, technologies and expertise has given us a competitive edge. We start with a comprehensive product line-up of leading technologies; dedicated capacity; already leading PCM development and delivery; a highly experienced management team and an amazing employee base of memory experts. Immediately, Numonyx is a formidable memory solutions provider."
Harrison said Numonyx will move to manufacturing memories using 45-nm processes by the end of the year. He added the venture has both wafer fabrication and assembly and test manufacturing facilities in addition to holding external supply agreements. These facilities include six 200-mm and three 300-mm wafer fabs, including Numonyx owned facilities in Israel, Italy and Singapore.
This, he stressed, will give Numonyx the flexibility to produce any combination of NOR, NAND and RAM wafers depending on customer demand.
Headquartered in Switzerland and incorporated in the Netherlands, Numonyx has approximately 7,000 employees worldwide with facilities in the U.S, Italy, China, Israel, Singapore, Malaysia, and Philippines.
Bank financing for the new venture is being provided by Intesa Sanpaolo S.p.A and Unicredit Banca d'Impresa S.p.A.
Intel will control 45.1 percent of the new company, ST Microelectronics 48.6 percent, and financial group Francisco Partners 6.3 percent.
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