The main reasons are that Elpida paid full price to build and equip their fabs. Micron is buying them for pennies on the dollar. So Micron can afford smaller profit margins to get a return on their investment.
Also, with Elpidas capacity Micron will gain economies of scale, spreading out R & D and other fixed costs over more wafers, leading to lower net manufacturing cost per wafer.
I bet the below,
1. high cost, japan's labor cost is twice of korea / singapore(where most micron's fab located).
2. f..ed up culture, that's what happened with late qimonda, ie. cheating , stealing everywhere.
can microns fix these two problems? very hard.
micron is better off going to support much higher data-rates via multi-gigabit differential interfaces,
look ahead, forge, the market will be there, people are more and more into content, videos, social networking, and you don't need to rely on older technologies, build faster, better cheaper ones
If the deal goes through then Micron gets extra capacity at a knock down price (and hasn't Apple indicated that it might move more memory sourcing to Elpida from Samsung??). If the deal does not go through then the Elpida capacity leaves the memory market - good for all DRAM players. I see Micron as a winner in either scenario?
It's a screaming deal. But that's not the whole deal. Micron still must pay $1.75 billion to Elpdia's debt holders. That's a lot of money, though not nearly as much as Elpida owed them. It's a fire sale deal, and a very good deal for Micron right now, but the final evaluation will probably have to wait a few months or years.
What are the engineering and design challenges in creating successful IoT devices? These devices are usually small, resource-constrained electronics designed to sense, collect, send, and/or interpret data. Some of the devices need to be smart enough to act upon data in real time, 24/7. Are the design challenges the same as with embedded systems, but with a little developer- and IT-skills added in? What do engineers need to know? Rick Merritt talks with two experts about the tools and best options for designing IoT devices in 2016. Specifically the guests will discuss sensors, security, and lessons from IoT deployments.