Intel and Micron Sign New Agreement for 3D XPoint Shipment

[AleksandarK]

Intel and Micron have signed a new agreement for the production of 3D XPoint memory. As currently the only source of 3D XPoint memory solutions, Micron will get a significant increase in cash flow coming from Intel for the memory production. While Intel and Micron ended their partnership on 3D XPoint memory, they have signed a new contract for the production and supply of new 3D XPoint wafers to Intel. This shows that the demand for 3D XPoint memory is strong, so Intel needs production capacity to deliver the memory, and Micron is the obvious choice.

Previously, Intel sold its ownership of Lehi fab based in Utah, which was manufacturing the 3D XPoint memory solutions, so it was left to Micron to use. However, they signed a new deal and now Micron is in charge of manufacturing and addressing the supply issues for Intel's future Optane products. The new agreement comes with changed pricing and forecast of the sales, so Intel is likely paying more cash to Micron this time.


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[eidairaman1]

In it to blame 1 another like ford and firestone...

 

[Flanker]

So this is all about a contract restructure, or are they unable to make up their minds on whether to break up?

 

[R-T-B]

Sounds more like they worked it out. Good for consumers, one would hope.

 

[InVasMani]

Seems to me like Micron was negiotiating their stake on the tech and Intel reluctantly obliged because while it would have been great to diversify further for them they have bigger issues to deal with at present. That would be my take on the situation at least that basically Micron was a bit more invested of the two into the tech while Intel was more unsure of it's overall importance given other on going more pressing circumstances.

Sounds more like they worked it out. Good for consumers, one would hope.

Good for the tech itself anyway. Perhaps Intel decide to jump back on board to for one reason or another due to the Corona Virus maybe it's less vulnerable to production slow downs and relative to the performance edge the tech offers it could be more of what the industry will be craving moving forward as flash production bottlenecks. It's anyone's guess though.