Boise, Idaho–Oct. 19, 2000–Micron Technology, Inc. and Kobe Steel, Ltd. recently announced that they have entered into a non-binding term sheet involving the $125 million (13.5 billion yen) purchase by Micron of all Kobe Steel’s equity interest in KMT Semiconductor, Ltd.
KMT, located in Nishiwaki City, Hyogo Prefecture, Japan, is a dynamic random access memory (DRAM) manufacturing joint venture between Kobe Steel and Micron. The company successfully implemented Micron’s 0.18-micron process technology over the past year and has initiated steps to covert its manufacturing processes to 0.15-micron technology.
The term sheet suggests that the parties will enter a definitive acquisition agreement, subject to standard terms and conditions including due diligence and regulatory approvals. It is further anticipated that Micron will assume or repay all of KMT’s debt at closing, which is projected to be $325 million (35 billion yen). The transaction is expected to close by the end of March 2001, at which time Micron will own 100% of KMT.