Bankrupt Japanese chipset maker, Elpida Memory Inc., is set to be acquired by Micron Technology Inc. for an estimated 200 billion yen ($2.5 billion), according to the Nikkei newspaper. Out of this $2.5 billion, Micron will use $1.76 billion of it to pay Elpida's debts, leaving as much as 70-percent of Elpida's liabilities unpaid.
The Nikkei wouldn't disclose where they got the information from, unfortunately. Micron will then invest 100 billion yen in Elpida facilities including their plant in Hiroshima, Japan, in order to boost output of DRAM chips. After acquiring Elpida, it should double Micron's share of the global DRAM market, up to around 24-percent. Considering Micron are an Apple supplier, this should only be good news for both Micron, and Apple.
It will help the company compete with currently industry leader Samsung, as well as give them greater control over supply gaps that have caused the company to endure four straight quarterly losses, even though DRAM prices have fallen. Micron shares jumped 4.4-percent, the most since March 13, to close at $5.97 yesterday.