Micron Technology forms MeiYa Technology Corporation, a joint venture with Nanya Technology Corporation
Client(s) Micron Technology, Inc.
Jones Day advised Micron Technology, Inc. in the $1.1 billion formation of MeiYa Technology Corporation, a joint venture with Nanya Technology Corporation to manufacture stack DRAM products and sell such products exclusively to Micron and NTC. Upon the satisfaction of customary closing conditions, Micron (through a new wholly-owned subsidiary) and NTC will each contribute 1.2 billion New Taiwan dollars ("NT$") (which is expected to be approximately equivalent to US$40 million) in cash to MeiYa, whereupon Micron and NTC will each own, directly or indirectly, 50% of MeiYa. The parties have each committed to contribute the NT$ equivalent of an additional US$510 million by the end of 2009. MeiYa will lease a fabrication facility in Taiwan from NTC and, after upgrading the facility to process 300mm DRAM wafers, is expected to commence manufacturing operations in 2009.
In addition, Micron will transfer to MeiYa certain intellectual property relevant to the manufacture of stack DRAM products, will transfer and license to NTC certain intellectual property relevant to the manufacture of stack DRAM products and will license from NTC certain intellectual property. Micron will receive transfer fees for such intellectual property transfers and will be entitled to receive royalties from NTC. Micron and NTC also will jointly develop process technology and designs for manufacturing stack DRAM products.
In addition to M&A and technology licensing representation, Jones Day provided antitrust, financing, real estate, and tax advice regarding this transaction.