Benzinga | Jul 1, 2021 02:35AM EDT

Micron To Sell 300-mm Chip Factory To Texas Instruments For $900M

Chipmaker Texas Instruments Inc. (NASDAQ:TXN) said Wednesday it has agreed to acquire Micron Technology Inc.'s (NASDAQ:MU) 300-mm semiconductor factory in Lehi, Utah, for $900 million.

What Happened: The two companies plan to complete the sale by the end of 2021. Texas Instruments said that the investment is part of its long-term capacity planning and it expects first revenue from the plant in early 2023.

See Also: Supply-Demand Imbalance In Memory Chips Triggers Analyst's Micron Upgrade

Why It Matters: The Lehi facility will be Texas Instruments' fourth 300-mm chip factory. In addition, the plant will start with 65-nm and 45-nm production for analog and embedded processing products.

Micron Technology said in March it plans to sell the Lehi facility and end production of a certain type of memory chip manufactured there exclusively. The company now plans to pursue the development of new memory solutions for data centers, enabled by the CXL interconnect.

Also on Wednesday, Micron Technology reported third-quarter earnings results that beat analysts' estimates.

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