Boston, MA 12/17/2013 (wallstreetpr) – Micron Technology,Inc. (NASDAQ:MU) is under talks whether it is a potential target for takeover or not. This is known by most of the people that a tragic fire at one of the plants of Hynix and consolidation in the memory business has led to a reduced supply of DRAM chips by the company and thus has led to profits for other players of DRAM. So, this is the reason why Micron Technology is under talks.
If any device wants to perform a meaningful calculation, it needs DRAM. DRAM can be thought of as a fast and good buffer system that stores data that can readily be fetched by the central processing unit (CPU) of a system. If you want your system to be snappy, it needs to have a faster RAM and more DRAM.
As the new mobile devices are being developed every year, it tends to have more memory. Thus, these devices are becoming faster than before. So, it can easily be concluded that these devices use memory devices that needs to be imported from the companies concerned with it. This is a very powerful trend.
The combination of computing units and memory together leads to a potential solution. To some extent, this has been done on various smart phones, which is also called as “package-on-package” interface. For example, Intel Corporation (NASDAQ:INTC) designed a special embedded DRAM that is to be used in its highest-end notebook processors. This was designed to feed the high performance graphics engines of those processors. Therefore, if Intel wants to acquire Micron Technology, it completely makes sense as this business would be highly profitable. Also, Apple Inc (NASDAQ:AAPL) uses many memory chips in its devices.
These two players can clearly think of acquiring Micron as they need memory chips extensively. But it is not the case that they will surely acquire this company.