Micron acquires Lexar to expand flash memory manufacturing capacities

Flash Memory has become the big thing in the hardware market. The market for such memory chips has grown phenomenally in the last couple of years. Higher end mobile phones, digital cameras, popular digital music, and video players like Apple iPod all require flash memory for data storage.

Samsung is currently the market leaders and is working hard on enhancing their manufacturing capabilities. Toshiba also recently announced massive plans to expand their capabilities to product flash memory. The latest news from this industry is that Micron Technology has announced their decision to acquire Lexar Media with the primary aim of expanding their own capabilities to manufacture flash memory.

This deal would be worth around $675 million and would be conducted in stock transaction. Micron said in a statement that they would exchange Lexar’s 81.6 million shares outstanding and issue additional stock upon the exercise of assumed options.

This would also lower their reliance on the DRAM memory, which has become pretty volatile in the recent years.

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