In July last year, Intel and Micron announced that they would end their joint development of the interesting 3D XPoint non-volatile memory. This meant that the partners' joint venture, IM Flash Technologies, would also die. Indeed, in October Intel that Micron can take advantage of and gain full control over the joint venture and all production sites belonging to it. The corresponding application for the buyout of Intel shares by Micron January 15 this year. After that, the transfer of Intel assets to the IM Flash Technologies JV was given a period of at least 6 and no more than 12 months.
ΠΠ°ΠΊ our colleagues at Toms Hardware, last week Intel and Micron filed with the US Securities and Exchange Commission for the transfer of assets. The filing states that the transaction is expected to close on October 31, 2019. For Intel's stake in the joint venture, Micron will pay between $1,3 billion and $1,5 billion. This deal could not be completed immediately because the partners had not yet completed development of the second generation of 3D XPoint memory. This event is expected in the second or third quarter, after which Intel and Micron will finally scatter.
A direct consequence of all these events will be such a relatively unpleasant fact as the possible rise in price of Intel Optane drives based on 3D XPoint memory. This memory is currently produced at a single plant in Utah, USA, which will become owned by one Micron as of October 31st. According to the agreement, the manufacturer will supply 3D XPoint chips to Intel for another year, but will increase the selling price of the chips to the level of contract prices. So far, Intel has received (and will continue to receive) 3D XPoint chips at prices close to production costs. Knowing Intel's policy, there is little doubt that it will try to make up for the losses by increasing the selling price of Optane products.
Intel also faces another task - to establish its own production of 3D XPoint chips. For this, the company one of their old Fab 11X factories in Rio Rancho, New Mexico. Clearly, this venture has to launch the 3D XPoint by October 31, 2020. By the way, the launch of new lines is rarely without problems and is accompanied by an increased level of defects. So reducing the cost of 3D XPoint and reducing the cost of Intel Optane drives will have to wait and wait.
Could Micron make a breakthrough? Does she plan to start releasing her products on 2019D XPoint at the end of 3? Maybe if Intel doesn't sue her for allegedly 3D XPoint production technologies.
Source: 3dnews.ru