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.
Drones are, in essence, flying autonomous vehicles. Pros and cons surrounding drones today might well foreshadow the debate over the development of self-driving cars. In the context of a strongly regulated aviation industry, "self-flying" drones pose a fresh challenge. How safe is it to fly drones in different environments? Should drones be required for visual line of sight – as are piloted airplanes? Join EE Times' Junko Yoshida as she moderates a panel of drone experts.