Micron to Expand Stake in Taiwan Joint Venture

Prices in chip industry are rebounding.

U.S.-based semiconductor maker Micron Technology plans to raise its stake in a Taiwan joint venture.

Micron Technology will invest Tw$5.0 billion (US$169 million) in Inotera Memories, a venture with Taiwan's Nanya Technology Corp.

Analysts saw this move as a sign of new optimism in the global chip sector. "Prices in the chip industry are rebounding," said Edison Lee, a Taipei-based analyst with Grand Cathay Securities.

Following the deal, Micron's stake in Inotera will rise by approximately 10 percentage points to about 40%, making it the single biggest shareholder in the quoted joint venture.

Inotera reported a record net loss of Tw$21 billion last year on revenues of Tw$37.38 billion due to slumping prices and weak demand for memory chips.

Copyright Agence France-Presse, 2012

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