Micron Amends Inotera Memories JV with Nanya
Micron Technology, Inc. (Nasdaq: MU) today announced that it has entered into agreements with Nanya Technology Corporation to amend their joint venture relationship involving Inotera Memories, Inc., a leading Taiwanese DRAM memory manufacturer, and to amend their joint development arrangement. The new agreements are effective immediately.
The amendments include a new supply agreement between Micron and Inotera pursuant to which Micron is transitioning to purchase all of Inotera's manufacturing output, with Micron purchasing substantially all of such output beginning in early 2013. Under the prior agreements, Nanya and Micron were each generally obligated to purchase half of Inotera's output. Commercial terms of the new supply agreement between Micron and Inotera have also changed. Under the new arrangement, Micron's purchase price for Inotera output is market based as opposed to the former margin sharing arrangement.
Additionally, Nanya will no longer participate in the DRAM technology joint development program with Micron, which was initiated when Micron and Nanya entered into the Inotera joint venture in 2008. Micron will also provide Nanya with a royalty-bearing technology license.
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