Micron and Intel pledge $5.2 billion for joint venture

Micron Technology Inc. and Intel Corp. will invest $5.2 billion in a new joint-venture company to produce memory devices used in digital cameras, cell phones, cam corders and MP3 players.

The deal, announced Monday, will give Micron the cash it needs to ramp up production of NAND flash memory, which industry analysts call the hottest product in electronics.

As part of the deal, Apple Computer Inc. said it will prepay $250 million each to Intel and Micron to supply flash memory for its iPods. Apple also announced long-term supply agreements with Micron competitors Hynix, Samsung Electronics and Toshiba. Including the deals with Micron and Intel, the Apple agreements are worth $1.25 billion.

"We want to be able to produce as many of our wildly popular iPods as the market demands," said Steve Jobs, Apple’s CEO, in a statement.

By Mike Maharry The Idaho Statesman

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