Micron CEO Sanjay Mehrotra said the acquisition underscores its “strong belief” that 3D XPoint technology and other emerging memories will provide a unique differentiator for the company and be an essential system for new data-hungry applications. The buy will also provide Micron with an established development and manufacturing facility and a highly skilled workforce. At completion, IM Flash will become a wholly-owned subsidiary of Micron, and all IM Flash employees will become part of the Micron team in Lehi.
As the IM Flash joint venture is already consolidated in Micron's financial statements, the deal should have no real on overall financial results or capex for fiscal 2019 or long term.
In July 2018, Micron and Intel agreed to conclude their joint development of 3D XPoint technology after the completion of the second-generation node, which is expected to occur in the second half of fiscal 2019. The two companies will then independently drive their own future technology roadmaps, Micron said. The company is currently working with ecosystem partners to introduce 3D XPoint products in late calendar 2019, with revenue ramp starting in calendar 2020.
Joint manufacture of 3D XPoint memory will continue at the IM Flash facility in Lehi, Utah until the transaction is closed. Based on prior agreements, Micron will sell 3D XPoint memory wafers to Intel for up to a year after close.
