Digi Times — China’s state-backed Tsinghua Unigroup reportedly plans to build its own DRAM fab and invite Micron Technology to be a shareholder of the fab, according to a report by Taiwan’s Central News Agency (CNA), which cited market rumors. The plan is also to have Micron transfer its DRAM technology in exchange for a stake in the fab, said the report.
Want China Times — State-owned company Tsinghua Holdings plans to invest around 30 billion yuan (US$4.67 billion) in developing smartphone chips over the next few years, hoping to compete with major players Qualcomm and Taiwan’s MediaTek, reports our Chinese-language sister paper Want Daily.
Market Realist — So far in this series, we’ve looked at Tsinghua’s offer for Micron Technology and changing China’s semiconductor landscape through strategic acquisitions. However, it isn’t just China’s semiconductor space that’s seeing a lot of M&A (mergers and acquisitions). It isn’t the only country that’s going through a consolidation phase. In the last couple of months, a lot of mega deals have happened in the semiconductor sector around the globe.
Micron Technology has raised its prices for NAND flash memory amid short supply from SanDisk, according to industry sources. Micron ships NAND flash chips mainly to Intel and Seagate based on long-term, fixed-price contracts, said the sources. While having the majority of its production capacity reserved for orders placed by the two biggest clients, Micron has told its other clients that prices for NAND flash chips have been adjusted upward on tight capacity, the sources noted.
In view of continued growth in global demand for SSDs, Micron Technology and SK Hynix are interested in investing in Taiwan-based SSD controller IC design houses including Silicon Motion Technology, Phison Electronics and JMicron Technology to strengthen their competitiveness, according to industry sources.
Some downstream DRAM chip clients reportedly are planning to sign long-term purchasing contracts with Micron Technology in order to ensure steady supply of memory chips, according to industry sources. Following its integration with Elpida Memory, Inotera Memories and Rexchip Electronics, Micron currently boasts a production capacity of 200,000 wafers a month, making the US-based memory chipmaker a strong potential supplier on a long-term basis, the sources noted.