IM Flash Singapore
 | |
| Non-public | |
| Industry | Semiconductor integrated circuitry |
| Fate | Intel's stake acquired by Micron Technology in April 2012. Company became wholly owned by Micron. |
| Founded | 2007 |
| Headquarters | Singapore |
IM Flash Singapore LLP is a semiconductor company founded in February 2007, by Micron Technology and Intel Corporation. The joint-venture was set up to produce NAND Flash memory for the 2 owners, and was the second site set up, after the success of IM Flash Technologies. It was located in Senoko, Singapore.
It was planned to begin operations in late 2008, but due to the global financial crisis that began that year, all 800 employees were retrenched.[1] The plant, which had completed construction, was idled as the capital equipment had not moved into the plant.
In 2010, preparations were made to start production by end of that year, as the IM Flash Technologies plant had reached maximum capacity.[2] It officially opened in April 2011.[3]
On February 28, 2012, Micron and Intel announced that they would expand their NAND Flash memory joint venture relationship, to increase the flexibility and efficiency of the joint venture. Intel would sell its stake in IM Flash Singapore to Micron, along with its share of IM Flash Technologies assets in Micron's Manassas, Virginia plant.
While the IMFS assets have been sold to Micron, there is an option in place for Micron to purchase Intel's interest in IMFT, per the disclosure in the company's 10Q SEC filing, 30 June 2012:
Micron Technology, Inc. and Intel formed IM Flash Technologies, LLC (IMFT) and IM Flash Singapore, LLP (IMFS) to manufacture NAND flash memory products for Micron and Intel. During the second quarter of 2012, we entered into agreements with Micron to modify our joint venture relationship. Under the agreements and as of June 30, 2012, we own a 49% interest in the remaining assets held by IMFT and no longer hold an ownership interest in IMFS. We received $605 million in the second quarter of 2012 from the sale of assets of IMFS and certain assets of IMFT to Micron, which is reflected as a sale of assets within investing activities on the consolidated condensed statements of cash flows. The carrying value of our investment in IMFT was $587 million as of June 30, 2012 ($1.3 billion as of December 31, 2011 for IMFT/IMFS) and is classified within other long-term assets.
As part of the agreements to modify our joint venture relationship, we also entered into an amended operating agreement for IMFT, which extends the term of IMFT to 2024, unless earlier terminated under certain terms and conditions, and provides that IMFT may manufacture certain emerging memory technologies in addition to NAND flash memory. These agreements include a NAND Flash supply agreement for Micron to supply us NAND products. We provided approximately $365 million to Micron in the second quarter of 2012, which we expect will primarily be applied to future product purchases under the supply agreement with Micron. A substantial majority of the $365 million is reflected as a cash flow used for operating activities. The agreements also extend Intel and Micron’s NAND joint development program and expand it to include emerging memory technologies. Additionally, the amended agreement provides for certain rights that, beginning in 2015, provide us with the ability to sell to Micron, or Micron the ability to purchase from us, our interest in IMFT. If Intel exercises this right, Micron would set the closing date of the transaction within two years following such election and could elect to receive financing from Intel for one to two years.
— Press release[4]
As a result, IM Flash Singapore became wholly owned by Micron and became its fourth facility in Singapore.[5]
References
External links
- Micron Technologies – company website