Micron planning to buy out Intel from IMFT (3D XPoint joint venture)

[BLinux]

There's no 'I' in 'IMFT' – because Micron intends to buy Intel out of 3D XPoint joint venture

 

[amalurk]

What is the future of Intel and X Point then? Why is Intel giving up their ownership piece of the only fab in the world that makes X Point.

 

[BLinux]

What is the future of Intel and X Point then? Why is Intel giving up their ownership piece of the only fab in the world that makes X Point.

I don't know if Intel has agreed to the buyout, the article only states that Micron has the intent, and that contractually, they have the option. Nothing about whether Intel wants to sell or not.

That said, Intel's reaction to this proposal might be revealing. When management of a company is struggling with a serious issue, a very common reaction is to reduce the number of problems by selling off assets and using the capital raised from the sale to assist with other issues they are dealing with. If they make such a choice, for such a reason, it's an indicator that their problems are pretty serious.

Strategically, I think 3D XPoint is a good technology to own - and for Micron's part, I think it's a good use of the cash they are sitting on. They've got cash right now, and with inflation on the rise, it would be silly to just sit on it - i like this move, and their previous announcement of a buyback program.

 

[Evan]

Intel has a fab on China that can make X point products, the issue is that it’s being used for other production and intel is short of fab capacity right now.