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Towards a Merger Between Elpida, Nanya and Micron

By linathael. Original by Lionel - 26/01/2012 06:00:00 CET - Category: Hard Drive - Source: Reuters

About three weeks ago, we were reporting on the rumored on-going discussions among RAM manufacturing companies to concentrate their business, by acquisition or mergers. This could be a way for those companies to better resist to current and future crisis on this market, while improving their R&D capacities. According to the last rumors, there will be serious discussion between  Elpida, Nanya and Micron to work together (merger or joint-venture?). Details are far from being clear and released, but they would need about 1 billion Euro of capital to secure their current financial status. Such project would also imply massive investment in R&D as well as optimizing production plants. 

If this merger occurs, we can be sure that the price of RAM will quickly increase, and as only few companies will be sharing the RAM market, we might have some strange effects on pricing that most anti-monopoly authorities will most likely investigate and follow carefully.

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