Intel and Micron set up the IM Flash joint venture a while ago, but their cooperation went through some transformations since then and it is doing so again.
The two companies have signed a new agreement, through which Intel's stake in IM Flash is reduced, even though the Santa Clara giant will continue to participate in the design of manufacturing technologies.
More precisely, Intel is selling its stake in two wafer factories in exchange for roughly $600 million, or 445.73 million Euro.
Meanwhile, Micron will get more of the NAND Flash chips made at the fabs and will possess a larger manufacturing network.
The factories now entirely under Micron's control are IM Flash Singapore (IMFS) and IM Flash Technologies (IMFT), based in Manassas, Virginia.
"Micron's joint venture NAND development efforts with Intel are a model of innovation, productivity and effectiveness," said Micron Chief Executive Officer Mark Durcan.
"With IM Flash and its associated programs, our companies have become leaders in the NAND Flash arena. These new agreements build on that success."
Micron will be supplying Intel with whatever NAND Flash memory it needs, including chips based on the 20nm technology, their most advanced yet.
The transaction is still subject to a number of conditions, but should complete by the end of the first half of the year (2012).
"The Intel-Micron partnership has created industry-leading NAND Flash memory technology and developed a robust global manufacturing network. The new NAND Flash supply agreement with Micron gives Intel better flexibility to meet growing demand for SSDs and other products," said Robert Crooke, corporate vice president and general manager of the non-volatile memory solutions group, Intel.
All this isn't going to matter to consumers all that much, but at least we can breathe a sigh of relief at the distinct absence of employee layoffs. We've had enough of those form IBM