Intel and Micron's relationship took a new turn this week in the name of advancing Flash memory technology.
Notably, Intel has agreed to sell two of its Flash memory factories to Micron for the price of $600 million.
Intel will get back approximately half of the consideration amount in cash. The rest will be deposited with Micron, which may be refunded or applied to Intel's future purchases under the NAND Flash supply agreement.
News of the deal comes as part of the announcement that Intel and Micron plan to expand their existing NAND Flash memory joint venture relationship.
The two factories in question are located in Virginia and Singapore. There is a third factory in Utah that operates under joint venture, but its involvement will remain unchanged.
Goals for the continuing partnership include Micron increasing its share of the global NAND Flash market. Micron will also continue to supply Intel with NAND Flash memory from its facilities.
Robert Crooke, corporate vice president and general manager of Intel's Non-Volatile Memory Solutions Group, explained in prepared remarks that "the new NAND Flash supply agreement with Micron gives Intel better flexibility to meet growing demand for SSDs and other products."