Micron to Acquire Chipmaker Numonyx for $1.27 Billion (Update2)

Micron to Acquire Chipmaker Numonyx for $1.27 Billion (Update2)

“Micron Technology Inc., the biggest U.S. producer of computer memory, bought and acquired Numonyx Holdings BV, a chipmaker company, for $1.27 billion (Par 1).” This decision helped and profited Micron by increasing the number of chips to develop more mobile phones. It also benefitted them by strongly competing as one of the top memory making companies in the world. They are behind Samsung, which is based in South Korea, because they are the world’s largest maker of memory (Par 10). By combining the Micron and Numonyx together, “Micron has made a $204 million profit in its first quarter since 2007 (Par 16).”

I believe that Micron is correct when considering themselves as one of the top memory making companies in the world because they are planning their company for the future. By buying Numonyx, they have increased their assets and profits immensely. They want to be above and independent of all fellow memory making companies so they can establish themselves as a stronger corporation. It seems they are trying to avoid the effects of our country’s recession and construct new ideas on how to make more efficient handsets and mobile phones. This deal is not only beneficial for the future of their business, but for the future of technology. By acquiring all of Numonyx chips, they will have the resources to develop better phones. “They are going to be a dominant force in the mobile handset market by their ability to offer multichip packages (Par 4).” These packages will be sent to the manufacturers who actually make the phones. Personally, when it comes to phones I see new and improved models come out every month. It is amazing how these chips can help the phone companies to develop more efficient mobile phones. It is even more incredible to think that each chip has to be design uniquely to make each specific phone and handset. Another benefit of purchasing these chips is that Micron is “broader” in a sense. This means that the companies who manufacture the phones will be going to them because they have the widest selection of chips. Hopefully with the heavy reliance and demand, Micron will eventually beat Samsung for the number one position as the top memory making company in the world.

As long as they are able to make and produce more chips for every type of mobile phone, Micron seems to be doing very well. As well as producing these memory chips, Micron should still keep looking at the different possibilities to develop new chips. Since technology is rapidly changing and expanding every single day they should find ways to take used phones and recycle the chips from those phones to make new chips. Then their business will continue to grow technologically and financially. After all they have been considered “the most active acquirer in the memory chip business (Par 15).” Therefore they should have no complications when producing and improving the memory chips for future handsets and mobile phones.

King, Ian. “Micron to Acquire Chipmaker Numonyx for $1.27 Billion (Update2)”. BusinessWeek. 10 Feb 2010. Retrieved 10 Feb 2010
http://www.businessweek.com/news/2010-02-10/micron-agrees-to-acquire-numonyx-taking-on-samsung-update1-.html.