Intel Corp. invested US$450 million in Micron Technology Inc. and said it would team with the memory chip maker to develop next-generation chips that work with future Intel products.
The investment by Intel's strategic investment program Intel Capital gives the Santa Clara, California, chip giant a 5.3 percent share in Micron, of Boise, Idaho, the companies said in a joint statement Wednesday.
"As we continue to develop high speed, high performance microprocessor and communications products, we feel it is very important for us that memory suppliers have the products in place to complement our products," Intel spokesman Chuck Mulloy said.
Micron plans to use the money to invest in 300 millimeter manufacturing technology and increase its production of DDR2 products, according to the statement. DDR2 is the next generation of DDR (double data rate) SDRAM (synchronous DRAM) products that promises increased capability, speed and data throughput.
Wednesday's investment in Micron follows investments by Intel totaling $123 million earlier this year in Japanese DRAM (dynamic RAM) manufacturer Elpida Memory Inc. Intel has also invested in Germany's Infineon Technolgies AG.
In 1998 Intel invested $500 million in Micron, but later sold the equity it had bought, Mulloy said.