Original URL: https://www.theregister.com/2001/12/03/micron_hynix_confirm_talks/
Micron, Hynix confirm talks
Talking about discussions about negotiations
Posted in Channel, 3rd December 2001 17:01 GMT
Micron has confirmed it is talking to Hynix - the subject: the merger of the two chip companies' memory operations.
In a terse press release, the two companies said they will today begin exploratory discussions "regarding a possible strategic alliance or other transaction".
We can't say we're surprised. Micron has, after all, never denied it's talking to other memory companies, as a spokesman admitted last week. We've been talking to everyone except Samsung, he said in response to a report in the Korean press that Micron CEO Steve Appleton was talking to Hynix.
Given the depressed nature of the memory market - recent spikes in DDR SDRAM prices notwithstanding - some degree of consolidation is only to be expected. Companies have been talking to each other, looking for partnerships, perhaps even merger partners, in a bid to find the best way to end the downturn - or at least survive it.
Infineon, for instance, has already been talking to Toshiba, a variety of Taiwanese memory makers and, quite possibly, Hynix too (though we suspect not, given chief executive Ulrich Schumacher's coolness to Hynix and Samsung). Toshiba is hawking its loss-making memory business around possible partners.
In this context, Micron's talks are not out of the ordinary. The announcement of the fact is possibly more about dampening investor enthusiasm than a real sign that a full-blown merger is on the cards. ®