Toshiba has decided to sell its DRAM business, not to German chipmaker Infineon Technologies, with which the company had been negotiating for several months, but to US-based Micron Technology.
Toshiba will stop making DRAMs and is to phase out production at Yokkaichi, Japan. The company suspended production on one of the fab lines there in August. Earlier this month, Toshiba said it would quit the DRAM market whether it found a buyer or not.
The sale will include the Dominion Semiconductor fab in Manassas, Virginia but not the equipment there used to make flash memories. Jointly owned by SanDisk and Toshiba, the flash equipment will be moved to another location.
Dominion was originally a joint venture between IBM and Toshiba and which started production in 1997. Toshiba took full ownership of the fab in 2000.
Steve Appleton, president, CEO and chairman of Micron, said: "Similar to prior transactions, we believe this acquisition will better position the company to more cost-efficiently produce its products."
Micron is currently engaged in separate talks with Hynix Semiconductor over a sale of the Korean giant's DRAM operation. A South Korean consortium led by Aralion has said it plans to buy Hynix's non-DRAM operations and turn the company into a foundry along the lines of TSMC but Hynix has played down the bid.