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MicronTechnology Inc. announced on June 30 as part of its quarterly earnings call that it had entered into a definitive agreement to sell itsLehi, Utah, fabrication plant to Texas Instruments (TI).
The economic value forMicronfrom the sale is $1.5 billion, made up of $900 million in cash from TI from the sales transaction, and approximately $600 million in valuefrom select tools andother assets, the Boise-based chip manufacturer said. Micronadded that it has sold some of these assets and will retain the remainder to redeploy to its other manufacturing sites or sell to other buyers.
Sale saves money in the long run
The company is taking a loss on the project, said CFO David Zinsner in an analysts’ call.
“We are taking an impairment charge of approximately $435 million, or approximately $330 million on an after-tax basis, as the $900 million sale price is...