Feeds

Intel pays Micron to boost server RAM output

Memory maker still losing money, though

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Intel will slip Micron $450 million to beef up its DDR 2 production, the companies said yesterday, even as the memory maker announced a massive fiscal year loss of $1.27 billion.

Publishing its latest quarterly figures, Micron reported a loss of $123 million (20 cents a share) on revenues of $889 million for the three months to 28 August, its fourth quarter. Sales were up 21 per cent on Q3, thanks to a 15 per cent increase in megabit part prices and growing demand for those chips. That demand exceeded production - up eight per cent sequentially - during Q4, allowing Micron to reduce its inventory below last quarter's levels and the previous year's figure.

For the year as a whole, the company realised revenues of $3.09 billion, up 19 per cent on the previous year, but not enough to push the company into the black. However, 256Mb DDR prices in particular fell around 30 per cent year on year, Micron said.

The Intel investment will see the chip giant take stock rights worth 33.9 million common shares. It's the second time Intel has put money into Micron - in 1998 it invested $500 million in the memory maker. This time, the injection follows the pattern of Intel's other recent memory company activity, in particular the $123 million it invested in Elpida, in two rounds. And like Elpida, Micron will use some of the money for the "deployment of DDR 2 memory".

Intel is keen to drive up DDR 2 production in time for the launch of DDR 2 server chipsets next year, followed by more mainstream chipsets which also support the next generation of DDR SDRAM. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
Intel, Cisco and co reveal PLANS to keep tabs on WORLD'S MACHINES
Connecting everything to everything... Er, good idea?
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.