Micron, Nanya in DRAM joint venture talks

By Suzanne Deffree, Managing Editor, News -- 3/3/2008

Micron Technology Inc and Nanya Technology Corp today announced they are exploring potential technology sharing, joint technology development, and development of a new joint venture for the DRAM memory market.

Such an agreement would focus on the joint development and design of sub-50-nm DRAM. A definitive agreement is expected to be signed in the next few months, Micron and Nanya said.

The two memory makers gave little further detail on the possible partnership, except to note that it would leverage Micron’s and Nanya’s manufacturing technologies and strengths to compete in the global DRAM business through greater scale and efficiency.

“Partnering with Nanya would be significant to Micron as we continue to drive toward the most cost-effective ways to grow and innovate,” said Mark Durcan, president and COO of Idaho-based Micron, in a statement.

Such a partnership could help the ailing DRAM market regain some of its now-lost pricing strength. IC Insights recently reported that semiconductor industry capital spending is expected to decline in 2008, with the top five spending cutbacks expected to come from DRAM suppliers, including Micron and Nanya. The market research company said that, after increasing total capital spending for DRAM by 44% in 2006, and thus increasing supply, the DRAM suppliers “paid” for this overspending with a price collapse in 2007. Indeed, the affects of that are continuing in 2008, with the Semiconductor Industry Association this morning reporting that DRAM was among one of the key markets to weigh down January worldwide semiconductor sales.

If the two memory markers do partner, the alliance could result in a reduction in memory capacity, which could lower supply and help adjust falling DRAM average selling prices.

Durcan continued to note that Taiwan-based Nanya is strategically located near its growing customer base.

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