Intel Invests $500 Million In Micron

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October 16, 1998 (7:42 AM EDT)

By Staff,

Intel announced Friday that it will make a $500 million equity investment in Micron Technology.

Intel will acquire stock rights exchangeable for approximately 6 percent of Micron's outstanding common stock.

The investment in Micron is part of Intel's strategy to support the development and supply of next-generation memory products and to help drive PC-industry growth by accelerating the adoption of Direct RDRAM, ahigh-speed memory interface technology developed by Rambus.

By providing additional financial resources, the investment by Intel, in Santa Clara, Calif., should enhance Micron's competitive position in the DRAM industry.

"We are pleased with Intel's support for our efforts to provide advanced memory solutions to our customers," said Steve Appleton, president and CEO of Micron Technology, in Boise, Idaho. "Micron is committed to accelerated support, development, and production of Direct RDRAM, and we expect to have these products available for shipment as early as the third quarter of 1999."

"Our goal in making this equity investment is ensuring an adequate supply of memory components, particularly Direct RDRAM. This is a significant strategic investment that supports our microprocessor road map into 2000 and beyond," said Craig Barrett, Intel's president and CEO.

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