venerdì 12 febbraio 2010

Micron Deal May Hurt Samsung, Hynix - WSJ.com

Micron Deal May Hurt Samsung, Hynix - WSJ.com

Micron Technology Inc.'s $1.27 billion acquisition of Numonyx Holdings BV will boost the U.S. chip maker's presence in the flash-memory chip market, creating a much stronger industry player, and threatens to take market share away from industry leader Samsung Electronics Co.

It could also pressure South Korea's Hynix Semiconductor Inc.—which has a strategic partnership with Numonyx in the development of flash memory—to look for another partner to remain competitive, analysts said.

"Since Micron is moving to step up efforts to strengthen its flash memory chip business through the acquisition and will become a bigger player, Samsung will have to look for ways to strengthen its competitiveness," said Lee Min-hee, an analyst at Dongbu Securities in Seoul. "The deal is also negative for Hynix because Hynix may now have to end its close ties with Numonyx in the development of flash memory."

Samsung, the world's biggest supplier of NAND flash memory by revenue, declined to comment on how the acquisition would impact its business. A Micron spokesman couldn't be reached.

Hynix on Wednesday didn't rule out the possibility that it could end its partnership with Numonyx.

"We don't anticipate a significant impact even if the partnership ends," it said in a statement.

In August 2008, Numonyx and Hynix agreed to a five-year agreement to jointly develop NAND flash memory chips. Numonyx also has a 21% stake in Hynix's chip manufacturing facility in China.

Hynix also said in the statement that it is currently considering whether it should buy back the Numonyx stake, adding such a move could temporarily burden its financial position.

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