Intel and Micron announced last week the formation of a jointly owned company that will produce NAND flash memory with a significant portion of the output already tagged to go to Apple for use in its iPods.
The company, named IM Flash Technologies, will receive $1.2 billion each from Intel and Micron in cash and assets, with Micron owning a 51 percent stake in the venture. Over the next three years, each company has pledged to invest an additional $1.4 billion each and Apple will prepay each firm $250 million for its flash-memory orders.
IM Flash will have production facilities in Boise; Manassas, Va.; and Lehi, Utah. The first chips come off the production lines in early 2006. IM Flash’s management team will be led by Intel’s Dave Baglee, who previously served as manager of Intel’s Fab 11 plant in New Mexico, and Micron’s Rod Morgan, who most recently served as manager of Micron’s fabrication facility in Manassas.
“This strategic relationship positions Intel and Micron to build on each other’s strengths to become leaders in the fast-growing NAND market segment,” said Steve Appleton, Micron’s chairman and president/CEO.