Intel, STMicro joint venture to produce flash chips

Intel and STMicroelectronics recently announced that they will start producing and selling Flash memory chips - storage devices that are very popular in cell phones, portable digital music players, digital cameras .

However, the contract between Intel and STMicro has not yet been approved by the US Federal Trade Commission (FTC). Not only that, the contract was also investigated by the US antitrust agency.

Intel Chairman Craig Barrett yesterday (September 5) expressed his hope that FTC will quickly announce the final decision on the joint venture plan between the company and STMicro.

Intel President Craig Barrett

Barrett also said that the FTC has recently asked Intel to provide more information about the joint venture plan before officially approving it.

The goal of this request is that the FTC wants to make sure the contract does not violate antitrust laws. Intel pledged to respond quickly to the FTC regarding this request in the hope that FTC will also quickly approve the cooperation contract.

Contrary to the FTC, the European Commission has now given the green light to allow Intel and STMicro to establish a joint venture. If FTC approves, Intel and STMicro will within 30 days officially form a joint venture.

The joint venture to produce new flash chips between Intel and STMicro will be based in Switzerland. Estimated total value of this joint venture amounted to $ 3.6 billion. STMicro holds a 48.6% stake and Intel has 45.1%. The rest belongs to Francisco Partners LP.

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