Intel and Micron have entered a deal where both have agreed to contribute over $1.2B each to create a company called IM Flash Technologies LLC. In the deal, Micron also agreed to sell its NAND flash and chip division along with associated intellectual properties to Intel for $270 million.

In the deal, Micron will hold 51% control over the joint venture with Intel on the balance. The new company will develop and produce flash memory technologies based on designs by Intel. The two companies said that each have agreed to also invest a combined total of $1.4B over the next three years. With consumer electronics sky rocketing in sales and mainstream acceptance, flash memory continues to be a strong cash cow for many companies.

So far Intel has paid over $1.96B in cash to the project, which will be located at Micron's own production and development facilities in Boise, Idaho, Manassas, Va. and Lehi, Utah.

This news article was written on February 28, 2006, quoting EE Times UK.