Micron Technology forms IM Flash Technologies, a $5.2 billion joint venture with Intel Corporation
Clients Micron Technology, Inc.
Jones Day advised Micron Technology, Inc. in its $5.2 billion joint venture with Intel Corporation to form IM Flash Technologies, LLC, a new company that will manufacture NAND flash memory chips. Micron and Intel each contributed $1.2 billion in cash, notes and assets to the venture and will add an additional $1.4 billion each in three years, with additional investments to be made as needed to facilitate the company's growth. Micron owns 51% and Intel owns 49%. IM Flash is headquartered in Lehi, Utah and has manufacturing facilities in Utah, Idaho, and Virginia. Production began in early 2006.
NAND is one of two flash technologies (the other being NOR) used in memory cards, USB Flash drives, handheld communications and consumer electronics devices. NAND flash technology offers faster erase, write, and read capabilities than NOR technology and is best suited to devices requiring high capacity data storage. IM Flash Technologies will combine Micron's expertise in developing NAND technology, and its highly efficient manufacturing operations, with Intel's capacity and resources.
Apple Computer, Inc. has entered into separate long-term agreements with each of Micron and Intel, to supply it with a significant portion of IM Flash's output of NAND chips - to be used in the production of its popular iPod - in exchange for a $250 million prepayment to each company.
Micron, founded in 1978 and headquartered in Boise, Idaho, employs 18,000 people in manufacturing facilities in the U.S., Italy, Japan, Puerto Rico, Singapore, and the U.K., and sales and marketing offices in more than a dozen countries worldwide.
In addition to M&A representation, Jones Day provided antitrust, intellectual property, licensing, real estate and tax advice regarding this transaction.