Research On Micron Technology Acquires Elpida

Merger and acquisition are always the hot-topic. There are 7 times of large-scale merging and acquiring tides since the first merging and acquiring tide which happened in 1897 in the worldwide, and they showed different feature under the different times, such as horizontal mergers and acquisitions, vertical mergers and acquisitions, mixed styles of horizontal and vertical, strategic mergers and acquisitions, association between strong enterprises, horizontal mergers and acquisitions in service industry, and finally happened in banking industry.The acquisition between Micron technology and Elpida is the one of international acquisitions in semiconductor industry. Though the acquiring amount is not remarkable like British Vodafone Air Touch PLC acquired Germanic Mannesmann AG which is more than US$ 200 billion, but it is still a quite important activity. Micron Technology is the sole DRAM chips manufacturer in American, which is listed in fortune 500 companies, and the same time, Elpida is also the only one DRAM chips maker in Japan. In DRAM chips area, Micron technology with 11.5% market share is ranking fourth and Elpida with 13.5% ranked third, following Korean manufacturers Hynix(23%) and Samsung(41%). After Micron technology acquiring Elpida, the new Micron with 25.1% market share would be ranked 2nd, then formed a situation of tripartite confrontation, and leverage the DRAM price and finally stabilizing the situation of DRAM price volatility.This thesis will use 7 chapters to research and analyze the case of Micron technology acquiring Elpida. Chapter 1 is the introduction part; the key point will be background description, significance of research and structure build. Chapter 2 is to describe the history of mergers and acquisitions, and introduce the theories. Chapter 3 is to introduce the background of relative companies. It will brief semiconductor industry and the companies, not only Micron technology and Elpida, also the companies which has the intention to acquire Elpida. Chapter 4 will be motivation analysis, from Micron’s strategies to understand why Micron will acquire Elpida. Chapter 5 describes the progress of acquisition, and studies the activities between Micron and Elpida. Chapter 6 will be the integration research after acquisition, will elaborate the integration from strategy, products, culture and financial. Chapter 7 will be the conclusion and enlightenment, summarize the acquisition of Micron technology and Elpida.