Micron to Sell Lehi, Utah, Fab to Texas Instruments

Rhea-AI Summary

Micron Technology (Nasdaq: MU) announced a definitive agreement to sell its Lehi, Utah facility to Texas Instruments for $1.5 billion. This includes $900 million in cash and $600 million in tools and assets. TI plans to retain the skilled team from Lehi and implement its technologies at the site. This transaction follows Micron's earlier announcement to shift focus away from 3D XPoint technology towards new memory solutions utilizing CXL interconnects, aimed at meeting increasing demands in AI and data analytics.

Positive

• Transaction value of $1.5 billion strengthens financial position.
• Retaining skilled workforce aids in smooth transition and technology deployment.

Negative

• Shift away from 3D XPoint technology could indicate potential revenue uncertainty.

BOISE, Idaho, June 30, 2021 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) announced today that it has entered into a definitive agreement to sell its Lehi, Utah, fab to Texas Instruments. The economic value for Micron from the sale is $1.5 billion, comprised of $900 million in cash from TI from the sales transaction, and approximately $600 million in value from select tools and other assets. Micron has sold some of these assets and will retain the remainder to redeploy to its other manufacturing sites or sell to other buyers.

Micron’s Lehi, Utah, facility has been home to a highly skilled team with expertise in all aspects of advanced semiconductor manufacturing. TI will offer all Lehi site team members the opportunity to become employees upon the closing of the sale and intends to deploy its own technologies at the site. The sale is anticipated to close later this calendar year.

“Micron’s Lehi, Utah, facility has a strong history of technology innovation and leading-edge semiconductor manufacturing,” said Micron President and CEO, Sanjay Mehrotra. “We are pleased to have reached an agreement with Texas Instruments as it is an industry leader and truly values the talented Lehi team and the capabilities this site offers to deploy its technology effectively. We are greatly appreciative of the contributions that the Lehi team has made to Micron, as well as the collaboration and engagement Micron has had with the local community.”

Micron announced its intent to sell the Lehi facility in March 2021, at the same time the company confirmed plans to end production of 3D XPoint technology and pursue new memory solutions for data centers, enabled by the CXL interconnect. CXL delivers high-performance connectivity between compute, memory and storage, addressing increased customer workload requirements driven by the broad proliferation of artificial intelligence and data analytics.

Weil, Gotshal & Manges LLP served as legal counsel to Micron, and Macquarie Semiconductor and Technology served as transaction advisors.

About Micron Technology, Inc.
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2021 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Micron Media Relations Contact
Erica Pompen
Micron Technology, Inc.
+1 (408) 834-1873
epompen@micron.com

Micron Investor Relations Contact
Farhan Ahmad
Micron Technology, Inc.
+1 (408) 834-1927
farhanahmad@micron.com

FAQ

What is the value of Micron's sale of its Lehi facility?

The sale is valued at $1.5 billion, comprising $900 million in cash and $600 million in tools and assets.

Who is purchasing Micron's Lehi facility?

Texas Instruments is the buyer of Micron's Lehi facility.

Will employees at the Lehi facility retain their jobs after the sale?

Yes, Texas Instruments plans to offer employment to all current Lehi site team members.

Why is Micron selling the Lehi facility?

Micron is shifting its focus away from 3D XPoint technology and towards new memory solutions for data centers.

When is the sale of the Lehi facility expected to close?

The sale is anticipated to close later in 2021.