August 13, 2007 – The European Commission has given its approval for the proposed new JV entity combining flash memory assets of STMicroelectronics and Intel’s NOR assets and resources, saying the transaction “would not significantly impede effective competition.”
The EC’s report found that “strong competitors are present” for both NOR and NAND flash memory, and that European customers “would be able to continue sourcing their needs from a sufficient number of alternative vendors.”
The new Switzerland-based company, proposed back in May and recently given the name “Numonyx,”
will combine ST’s flash memory assets (including its NAND joint venture interest and other NOR resources) with Intel’s NOR assets and resources (and some extra funding from private equity firm Francisco Partners LP), which together generated sales of about $3.6 billion in 2006, with nine main R&D and manufacturing locations around the world and approximately 8000 employees. It also will integrate the two firms’ parallel programs on phase-change memory, though the companies haven’t disclosed details of how those efforts will be combined.