Toshiba Dumps Infineon, Sells Chipmaking Plant To Micron - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Toshiba Dumps Infineon, Sells Chipmaking Plant To Micron

The companies had been in talks to partner their chip businesses, hoping to cut costs in a depressed market. But Toshiba decided out of the commodity DRAM market entirely.

Japanese electronics company Toshiba Corp. has ended talks about a chipmaking partnership with German semiconductor company Infineon Technologies AG and will instead sell its U.S. DRAM plant to Micron Technology Inc.

Toshiba and Infineon had been in talks for several months to partner their chip businesses, hoping to cut costs in a depressed market. Just last week, Infineon CEO Ulrich Shumacher said the two companies had agreed on the framework of a deal. But Toshiba has decided to get out of the commodity DRAM market entirely, selling the Manassas, Va., Dominion Semiconductor plant to Micron by the end of January. Financial details of the transaction have not been disclosed.

VLSI Research analyst Risto Puhakka says the deal is good news for the semiconductor industry, and particularly for DRAM makers. "It gets one supplier out of the picture," he says. "It's been so bad for DRAM makers that there really needs to be a serious consolidation." Puhakka says that DRAM makers sell the chips at a loss because supply outweighs demand, but consolidation will give them some leverage.

Good news for chipmakers could be bad news for customers who are used to bargain-basement prices. "The issue here is that if the industry consolidates further, the suppliers will get some pricing power," Puhakka says. "Eventually, the systems makers will have to pay more and charge their customers more."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Commentary
Gartner Forecast Sees 7.3% Shrinkage in IT Spending for 2020
Joao-Pierre S. Ruth, Senior Writer,  7/15/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll