NOR-bound Micron eyes Numonyx merger

SAN JOSE, USA: In what could be start of a significant development in the chip scene, the industry grapevine is rife with hushed talk about a possible merger of Numonyx with Micron Technology Inc.

Numonyx is the memory spin-off of Intel and STMicroelectronics, wherein STMicroelectronics holds a 49 per cent stake while Intel has 45 per cent. Francisco Partners owns 6 per cent.

The rumour mills are working over time, suggesting that the development might be initiated very soon. Talk of such a possibility comes close on the heels of reports that Micron Technology is desperately seeking an entry into the NOR flash market.

Adding to the rumour are speculations that Intel is looking to shed its stake in Numonyx. Though both the companies have not commented as yet, the talk of a merger is gaining momentum.

Meanwhile, industry observers and analysts are keeping their fingers crossed. Most of them believe that Micron is indeed looking at an NOR market foray and would only be natural if the company is zeroing in on Numonyx. However, they feel such a deal would not do any good for the company, owing to the fact that Micron could see its numbers decline if the deal happens.

As if in a bid to play its part, chip giant Intel seems to be keen on brokering a deal between Micron and Numonyx. The company might offload its pie in Numonyx.