By Tony Hallett, 19 October 1998 14:33
NEWS Intel is to pay $500m for a 6 per cent equity stake in Micron Technology, a US memory chip maker. Intel has not been a player in the memory chip business for many years, but has said investing in the future of Micron's Direct RDRAM (Rambus Dynamic RAM) memory interface technology, will help drive PC growth. Craig Barrett, Intel president and CEO, explained: "Our goal in making this equity investment is ensuring an adequate supply of memory components, particularly Direct RDRAM. This is a significant strategic investment that supports our microprocessor roadmap into 2000 and beyond." The world's largest chip maker had been rumoured to be considering an investment in either Hyundai or Samsung, the Korean memory chip makers many observers hold responsible for the current crisis in the semiconductor market. On a tour of the Far East earlier this year, then CEO-elect Craig Barrett met with Korean officials and the heads of the troubled companies. However, Micron's CEO, Steve Appleton, has regularly spoken out against rivals in the Far East, who he has accused of illegal product dumping. But whereas other semiconductor manufacturers such as Siemens, as well as various Japanese players, have been forced to scale back their operations, Micron looks set to ride out the current crisis, having made several key acquisitions.
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