$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

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

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


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
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 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
      1
2345678
9101112131415
16171819202122
23242526272829
3031     




Poll

Do you use microSD card with your phone?
or leave your own version in comments (15)