Micron Technology, Inc.(NASDAQ: MU) & Intel Corporation (NASDAQ: INTC) have recently announced that they are parting ways and will discontinue their joint development program – 3D NAND. However, both the companies will continue to co-develop the third generation of this program. The announcement has already made a major impact on the share value of both Micron and Intel as the rates of these two companies started declining after they came out with their “forging our own paths” statement.
According to the companies, they are parting ways in developing the flash memory chips –NAND but only after the current generation development is complete. The shares of Micron are down by 1% at $45.29 whereas the Intel shares are down by 1.6% at $44.02. Incidentally, the chief executive of Intel, Brian Krzanich is to make a keynote address at the Consumer Electronics Show in Las Vegas soon and is expected to throw more light on this decision to part ways.
The Success Journey Of Intel & Micron
In the last few years, flash memory has become the most important and meaningful part of the business of Intel and it certainly has helped the Santa Clara, CA-based American company to diversify away from the microprocessor. The alliance between Micron & Intel included funding from Intel for the development costs of NAND in exchange for shares in the sales proceeds of Micron’s NAND.
Together the two companies have come up with some remarkable solutions including special sorts of solid-state products like “Optane,” formerly known as “3D Xpoint.” Optane is a form of non-volatile memory that overlaps the line between flash and DRAM.
Intel To Partner With Chinese Company?
After parting ways with Micron Technology, new reports are coming out indicating that Intel may make an alliance with Tsinghua Unigroup, a Chinese company that was eager to buy Micron a couple of years ago. Things are certainly not going well for Micron who stands to lose a lot if Intel decides to make an alliance with Micron’s competitor.