The DRAM industry is a long time consolidating. Steve Appleton, CEO of Micron, says, earlier this week, he expects consolidation. He probably has his eye on Nanya with whom Micron shares a joint development agreement and a jv in Inotera.
“As they (competitors) continue to weaken, they’re going to have to figure out what they’re going to do,” says Appleton, “and so I think that will drive some further consolidation. I think that’s inevitable.”
With $1.9 billion cash in the bank it can feel confident it will be a consolidator rather than a consolidatee.
Micron has acted as a consolidator before, buying the Intel-ST flash jv Numonyx and TI’s DRAM operation. It took a long look at Hynix a few years back but declined the opportunity to buy it.
Appleton says the Numonyx acquisition paid back its investment quickly.
So, despite losing $178 million in the three months to Dec 1st, and $135 million in the three months before that, Micron shrugs off woes such as macro-economics, the move from PCs to tablets and the Thailand flooding affecting HDD supply as mere temporary set-backs to the onward march of the memory industry in which it aspires to take a greater share.
Hope springs eternal . . . . . .