Micron Technology emerged as the biggest shareholder of Inotera Memories, with 40% stake in the company. This follows Nanya Technology's decline in shareholding from 30% to 26%. Micron had recently taken up new shares of Inotera in a private placement for about NT$5 billion (US$169.1 million), or NT$6.55 per share. DigiTimes notes that the fresh investment by Micron will help expedite DRAM and NAND flash capacities in Taiwan, Japan, and the US; which will helpD RAM makers to deliver integrated DRAM/NAND flash solutions to clients to improve ASPs and profitability, according to Inotera president Charles Kao.

Idaho-based Micron Technology is reportedly going to spend at least US $500 million in purchasing a stake in its Japanese rival, Elpida, according to a Economic Daily News report. This development closely follows reports of an equity tie-up between the two companies, with a decision emerging in February.

Taiwanese Nanya Technology and Inotera Memories stated in recent reports that DRAM makers should consider uniting their operations as such moves could contribute to the industry's sustainable development. Elpida refused to comment on this latest report. What does this mean to the consumer? The year 2011 has been a bloodbath for DRAM makers as overproduction led to drastic drops in PC memory prices, and a watershed for PC consumers as a result. These latest developments could contribute to the inevitable rebound of DRAM prices in 2012.

Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for its first quarter of fiscal 2011, which ended December 2, 2010. For the first quarter, the company had net income attributable to Micron shareholders of $155 million, or $0.15 per diluted share, on net sales of $2.3 billion. The results for the first quarter of fiscal 2011 compare to net income of $342 million, or $0.32 per diluted share, on net sales of $2.5 billion for the fourth quarter of fiscal 2010, and net income of $204 million, or $0.23 per diluted share, on net sales of $1.7 billion for the first quarter of fiscal 2010.

In the company's Memory segment (which excludes Numonyx and other non-reportable segments), revenue from sales of DRAM products was 19 percent lower in the first quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010 due to a 23 percent decrease in average selling prices partially offset by a 5 percent increase in unit sales volume. Revenue from sales of NAND Flash products was up slightly in the first quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010 due to a 20 percent increase in unit sales volume partially offset by a 15 percent decrease in average selling prices. The company's gross margin for its Memory segment was 26 percent in the first quarter of fiscal 2011 compared to 37 percent in the fourth quarter of fiscal 2010, primarily due to the decreases in average selling prices, partially offset by decreases in manufacturing costs.

Micron Technology today announced that it is expanding its partnership with Nanya Technology Corporation and signing a definitive agreement to acquire Qimonda AG's 35.6 percent ownership stake in Inotera Memories, a leading Taiwanese DRAM memory manufacturer, for $400 million in cash. To help fund the purchase price, Micron has obtained $285 million in term loan financing commitments from strategic sources at favorable terms.