$2.5 billion deal makes Micron world's second biggest RAM manufacturer

Micron logoIdaho-based RAM maker Micron Technology yesterday agreed to acquire Japanese competitor and Apple supplier Elpida for the equivalent of $2.5 billion. Described as a "sponsor agreement" by the parties concerned, the deal makes Micron the world's second largest manufacturer of RAM, behind only Samsung.

Korean firm SK Hynix has been pushed into third place, but still holds a significant share of the market — between them, the big three manufacturers now control 90 percent of the $30 billion industry, according to a report from Reuters. While enthusiasm varies, most analysts agree that the Micron/Elpida deal will help to calm a market that has seen extreme volatility in recent years.

$2.5 billion deal makes Micron

Random Access Memory is a complex thing to manufacture, requiring huge investment in production facilities and infrastructure. But when these facilities are run at full capacity, supply can outstrip demand, driving prices into a death spiral. "The emergence of three major DRAM players will help DRAM chip prices gradually stabilize, bidding farewell to the price-slashing competition of the past," Taiwanese research firm Trendforce tells Reuters.

What this means for consumers is less clear. With reduced competition, prices for standalone RAM sticks may rise, but what's really going to have an impact is the reaction of device manufacturers. Companies like Apple and HP may choose to pass potential price hikes on to consumers or absorb the extra cost by making cutbacks elsewhere.

Source: The Verge

Tags: Micron

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Google’s voice assistant platform has been known as Google Now
The SanDisk 1TB SD card prototype represents another significant achievement as growth of high-resolution content
Microsoft is developing a new “Skype for Life” client
Siri on the Mac is new, and is similar to that on the iOS
The latency in this test was supposedly no more than 2 milliseconds
Apple has made to the iPhone 7/7 Plus is by making the home button a solid state button
Android Nougat should eventually extend back to the Galaxy S6 generation
You’re not supposed to expose the iPhone to water anyway
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you like Windows 10?
or leave your own version in comments (32)