Japan`s Toshiba – Germany`s Infinion, Agree on Memory Semiconductor Merger

Japan`s Toshiba, which ranks fourth in international memory semiconductor production, and Germany`s Infinion Technology, ranked fifth, agreed to merge its memory semiconductor division.

If the merger happens, the two will surpass Hynix in sales (compared to last year), become third in the market, and create more disturbances in the memory semiconductor market.

According to related businesses and outside sources such as Nihon Geijai Shinbun, Toshiba and Infinion are planning to establish a joint production company by the first half of next year and manage memory production from the joint company. The two companies will separate DRAM and Flash Memory production, with Infinion in charge of most of the DRAM division and Toshiba in charge of 80 to 90 percent of the Flash Memory division.

Toshiba has been planning to separate the memory semiconductor division and merging it with a foreign company since August, and has been negotiating with various companies such as Samsung and Infinion.

Related corporations are looking at the merger as a sign of reorganization in the semiconductor business.

Meanwhile, Samsung Electronics commented on the report, ``We never received official word from Toshiba about terminating the negotiations. However, it was judged that Toshiba was leaning toward Infinion.``

artemes@donga.com