Hope and Memories Spring Eternal

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 . . . . . .


One comment

  1. Indeed it does 🙂
    Numonyx was in relatively good shape with good fabs. Apart from Nanya’s Fab 3, most of the weaker DRAM companies are stuck with fabs that you’d have to upgrade significantly even to make More than Moore mixed signal devices, let alone competitive DRAMs.
    And even if Micron bought up all the stragglers for market share, they still wouldn’t be challenging Hynix.

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