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South Korea's Hynix Semiconductor is expected to finalize a revised alliance proposal to Micron Technology, which is in talks to buy the Korean chipmaker's memory business; the deal is expected to be worth about $4 billion, creating the world's No. 1 memory chipmaker ahead of Samsung.
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For a Japanese chipmaker desperately seeking ways to wean itself from the depressed memory business, this videogame is of epic proportions.
Hammered by the declining fortunes in the computer memory business and the general downturn in the semiconductors sector, it has also been haunted by the prospect of losing the crucial court cases.
That sale should leave TI completely free of the cash-sucking memory business by the end of September.
Caris analyst Rick Whittington said Cypress' computer, consumer and SunPower divisions are replacing the company's traditional SRAM memory business as the principal product lines.
The spin-off of Spansion, AMD's flash unit, will "remove the requirement to fund a very capital-intensive flash memory business over the next few years," according to Piper.
Memory in general is doing well, and the flash memory business is probably the most robust right now.
"However, a continued commoditization of the Flash memory business heading into the downturn and potential for excess processor capacity in 2006 balances our positive processor outlook".
In the memory business, if you pick the wrong stepper [a device used in chip-making], your company fails, says Lim.
In December, Intel sold its cellular chip business to the Marvell Technology Group, making Intel's presence in the NOR memory business less strategic to the company, analysts said.
For an industry that produces such boring commodity technology that is largely taken for granted, it comes as some surprise that the computer memory business has taken on the trappings of a soap opera.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com