JUMP REPORT

The sale of Intel's Nand memory-chip unit to SK Hynix will bring needed consolidation to the industry segment and should brighten prospects for the remaining companies, analysts said.

Micron Technology, Inc. (NASDAQ:MU) was in 84 hedge funds’ portfolios at the end of the second quarter of 2020. The all time high for this statistics is 94. MU investors should pay attention to a decrease in activity from the world’s largest hedge funds lately. There were 94 hedge funds in our database with MU […]

High-performance memory and storage in a single, tightly designed package accelerate 5G applications for smartphonesBOISE, Idaho, Oct. 20, 2020 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU), today announced the launch of uMCP5, the industry’s first universal flash storage (UFS) multichip package with low-power DDR5 (LPDDR5) DRAM. Now ready for mass production, Micron’s uMCP5 combines high-performance, high-density and low-power memory and storage in one compact package, equipping smartphones to handle data-intensive 5G workloads with dramatically increased speed and power efficiency. The multichip package uses Micron’s LPDDR5 memory, high-reliability NAND and leading-edge UFS 3.1 controller to power advanced mobile features previously only seen in costly flagship devices using discrete products, such as stand-alone memory and storage. Now available on other high-end phones, these emerging technologies — such as image recognition, advanced artificial intelligence (AI), multicamera support, augmented reality (AR) and high-resolution displays — are becoming accessible to more consumers. “Moving 5G’s potential from hype to reality will require smartphones that can support the immense volumes of data flowing through the network and next-gen applications,” said Raj Talluri, senior vice president and general manager of Micron’s Mobile Business Unit. “Our uMCP5 combines the fastest memory and storage in a single package, unleashing new possibilities for 5G’s disruptive, data-rich technologies right at consumers’ fingertips.”Micron uMCP5 brings unparalleled speed and efficiency to the 5G ecosystemThis launch builds on Micron’s March announcement of its sampling of uMCP5 and sets a new standard for the mobile market as the first multichip package to use the latest generations of UFS NAND storage and low-power DRAM. The vast volumes of data that smartphones must store and process today are pushing memory bandwidth to its limits with LPDDR4-based midtier chipsets. The result is lowered video resolution, frustrating lags and limited features.With LPDDR5, Micron has significantly increased memory bandwidth from 3,733 to 6,400 megabits per second (Mb/s), enabling seamless, instant experiences for mobile users, even when using data-heavy features. “5G provides smartphones with unprecedented multigigabit speeds to connect with the cloud,” said Ziad Asghar, vice president of product management at Qualcomm Technologies, Inc. “We're excited that uMCP5 is now available, bringing memory on par with 5G speeds to a new generation of phones and enabling best-in-class gaming, differentiated camera and AI experiences, and ultrafast file transfers.”Designed specifically for next-generation 5G devices, uMCP5 can easily and quickly process and store massive amounts of data without compromising performance or power usage. High-performance memory and storage capabilities provide uMCP5 with the ability to fully support 5G download speeds and more applications running at once.Micron uMCP5 features include: * Dramatically extended battery life: Building on its success with uMCP4, Micron taps LPDDR5 memory for uMCP5 to enable complete utilization of 5G networks, providing a nearly 20% power efficiency boost compared to LPDDR4. In addition, Micron’s UFS 3.1 consumes about 40% less power than Micron’s UFS 2.1 predecessor. For smartphone users, this means extended battery life — even when consuming power-draining multimedia applications or data-intensive features such as AI, AR, image recognition, gaming, immersive entertainment and more. * Fast download speeds: Unlocking the full potential of 5G performance, Micron’s uMCP5 provides users with 20% faster sustained download speeds, as compared to Micron’s previous UFS 2.1-based solutions. * Boosted endurance: Micron’s uMCP5 NAND boasts an improved endurance by around 66% to 5,000 program/erase cycles, exponentially increasing the cycles and volume of data that devices can program and erase without degrading device performance — extending a smartphone’s life span even for the heaviest of users. * Industry-leading bandwidth: Devices with uMCP5 will support a maximum DRAM bandwidth of up to 6,400 Mb/s, a 50% increase compared to the previous LPDDR4x generation, which runs at a bandwidth of 4,266 Mb/s. This allows mobile users to multitask on many applications without diminishing experience. The increased bandwidth also enables higher-quality image processing for AI-powered computational photography in smartphones, putting professional photography capabilities in users’ hands. Micron is the first vendor in the industry to support full-speed LPDDR5. * Latest flash performance: Micron’s uMCP5 also draws on the fastest UFS 3.1-based storage interface, providing twice the sequential read performance and 20% faster write speeds compared to Micron’s previous generation of UFS 2.1 products. * Tight, space-saving design: Micron designed uMCP5 in the most compact form factor possible, using its multichip package expertise and known manufacturing and packaging techniques — enabling slimmer, more agile smartphone designs. Devices using Micron’s package can save 55% of printed circuit board space compared to discrete solutions, meaning stand-alone versions of LPDDR5 and UFS. This space savings enables phone manufacturers to maximize battery size or add features, such as cameras, gesture devices or sensors. Micron offers a broad range of capacity configurations up to 12 gigabytes (GB) of LPDDR5 and 512 GB NAND.Availability of Micron uMCP5 Now ready for mass production, uMCP5 is available in four distinct density configurations: 128+8 GB, 128+12 GB, 256+8 GB and 256+12 GB. To learn more, visit https://www.micron.com/products/multichip-packages/ufs-based-mcp.About Micron Technology, Inc. We are an industry leader in innovative memory and storage solutions. Through our global brands — Micron® and Crucial® — our broad portfolio of high-performance memory and storage technologies, including DRAM, NAND, 3D XPoint™ memory and NOR, is transforming how the world uses information to enrich life for all. Backed by more than 40 years of technology leadership, our memory and storage solutions enable disruptive trends, including artificial intelligence, 5G, machine learning and autonomous vehicles, in key market segments like mobile, data center, client, consumer, industrial, graphics, automotive, and networking. Our common stock is traded on the Nasdaq under the MU symbol. To learn more about Micron Technology, Inc., visit micron.com.© 2020 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and Intelligence Accelerated are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners. CONTACT: Micron Media Relations Contact Steffi Lau Micron Technology, Inc. +1 (408) 834-1618 steffilau@micron.com

(Bloomberg) — Intel Corp. agreed to sell its Nand memory unit to South Korea’s SK Hynix Inc. for about $9 billion, a deal that allows the U.S. chipmaker to concentrate on its main business while shoring up the Asian company’s position in a booming market.The chipmaker will pay 10.3 trillion won for the Intel unit, which makes flash memory components for computers and other devices. The acquisition, which will take place in stages through 2025, includes Intel’s solid-state drive, Nand flash and wafer businesses, as well as a production facility in the northeastern Chinese city of Dalian.The deal should shore up Hynix’s position in a business that’s boomed after Covid-19 drove demand for the chips used in everything from Apple Inc.’s iPhones to data centers. It whittles down another player in an industry the Korean company dominates alongside Samsung Electronics Co. and Micron Technology Inc., potentially buoying Nand flash prices. Hynix’s shares fell about 1.8% after analysts raised concerns about the price tag on its largest acquisition ever.“Hynix is now entering the hyperscale control chip business by purchasing Intel’s business. Although there is some skepticism about the price of the deal, I think this won’t be a burden because it will ensure solid long-term cash flow,” said Greg Roh, an analyst at HMC Securities. “The market consolidation is good news for Korean memory chipmakers, and will alleviate oversupply issues.”Read more: Intel ‘Stunning Failure’ Heralds End of Era for U.S. Chip SectorIntel has said for months it was exploring options for the flash group. Hynix however won’t be buying the Optane division, which develops chips that can permanently store data and read and write it faster than NAND — if not faster than traditional DRAM. The product, which went on sale in 2018, was tested successfully by some large cloud providers and Alibaba Group Holding Ltd. used the technology to support its massive Singles’ Day sales. Bob Swan, Intel’s chief executive officer, described Optane as “something special” last year.The Korean company said it will pay Intel $7 billion before the end of 2021, then the rest by March 2025. Citigroup advised Hynix, while Bank of America did the same for Intel. The deal could allow Hynix to surpass Kioxia — a Toshiba Corp. spinoff — in the Nand flash market, in particular, according to Bloomberg Intelligence analyst Anthea Lai.What Bloomberg Intelligence SaysSK Hynix’s agreement to acquire Intel’s memory chip unit for 10.3 trillion won will help the South Korean chipmaker surpass its second-biggest rival Kioxia by NAND flash revenue, we calculate. The deal would consolidate the NAND market, with Samsung, SK Hynix and Kioxia commanding more than 70% of revenue share, aiding NAND price recovery and narrowing losses, in our view.\- Anthea Lai, analystClick here for the research.The acquisition also further streamlines Intel’s struggling empire. Since taking over in 2019, Swan has looked to sell several units that aren’t part of the company’s focus on processors for personal computers and servers.The Santa Clara, California-based company has delayed production of important upcoming chip lines and now lags behind some industry players in manufacturing technology. Its shares are down about 9% so far this year, while the benchmark Philadelphia Semiconductor Index is up almost 29%.Despite the delays, the company’s server group has been performing well. Shedding another non-core business could help Intel focus on fixing its chip technology woes.Intel unloaded its smartphone cellular modem group to Apple in 2019 and this year sold its home connectivity chips group to MaxLinear Inc. In July, the company said it was considering moving away from manufacturing its own chips, potentially benefiting contract producers such as Taiwan Semiconductor Manufacturing Co. and Samsung.Read more: Intel’s Latest Chip Push Suggests the Company Has a Short Memory(Updates with share action and analyst’s comment from the third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

(Bloomberg Opinion) — Intel Corp. has stumbled lately. To right itself, the semiconductor giant needs to get back to basics and prioritize its main business. An exit from the memory industry will help that effort.The company agreed to sell its Nand memory-chip subsidiary to South Korea’s SK Hynix Inc. for about $9 billion, the Asian chipmaker said in a statement late Monday New York time. Despite large investments in flash memory, Intel has never been able to become a big player in these types of semiconductors, which are used in storage devices inside computer hard drives and consumer electronics. That’s a problem because in a commodity market such as memory, leadership and size are essential to generate profits over the long term. With no prospects for large gains on the horizon, Intel is smart to give up on memory. First, the move can help the company’s bottom line. Earlier this month, Raymond James estimated Intel could boost its annual free cash flow by $2 billion if it left the memory business. Second, the prospects of this part of the chip industry aren’t very promising. This, analysts say, is because market leader Samsung is willing to flood the market if necessary to defend its leading position, without regard to maintaining its prices. Not a great situation for the other smaller players. Even Micron Technology Inc. CEO Sanjay Mehrotra hinted at those difficult industry dynamics during his earnings call last month. He noted the industry needs to reduce its factory investments if chipmakers wanted to improve the market’s profitability. This is a battle Intel doesn’t need to fight. But most importantly, Intel needs to focus on its primary business: central-processing unit (CPU) chips. Frankly, the company has gotten distracted with several needless acquisitions and forays into disparate markets such as security software, smartphone wireless chips and programmable FPGA chips. All those areas don’t matter if the company loses technical leadership in the CPU market. And after Intel revealed in July that another next-generation chip based on 7-nanometer manufacturing technology would be delayed, most analysts now believe Advanced Micro Devices Inc. has the prime position to make the fastest, best-performing processors for several years. A $9 billion deal isn’t going to fix all the problems of a $200 billion company. But every step toward a more focused Intel is a positive.(Updates throughout to reflect that Intel agreed to sell its memory business to SK Hynix.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.