US based multinational tech outfit Micron Technology is investing $600 million to buy back Intel's stakes in two wafer factories.
Should the move go to plan, Micron will be able to enjoy more control over the joint venture it has with the Santa Clara chip company. The partnership between the two companies is aimed at designing chips used for storing data in mobile devices including phones and tablet PCs. Under the terms of the new deal, Micron will continue to supply NAND chips to Intel.
"Micron is going to get as much as a 30 percent more capacity from the deal and they would now be able to sell a significant portion of this back to Intel at an incremental profit," Hans Mosesmann analyst Raymond James said in a statement to Reuters.
Micros is renowned for being the largest memory chip maker in the US. Under the previous deal, Intel was paying the company a hefty $1 billion figure per year for its flash memory products. The new deal, as told by analysts, is likely to leave Micron with a better margin on near about 50 per cent of those sales, if not more.