08.27.2001
Toshiba, Infineon consider DRAM deal

• Development: Toshiba, one of Japan's leading DRAM makers, is in negotiations to merge memory-chip business with German chip maker Infineon as part of a broader corporate restructuring plan.

• Analysis: After Toshiba’s decision to cut 25% of its DRAM capacity, the merger is expected to further reduce costs. Promos Tech (33% owned by Infineon) which currently manufactures DRAM for Infineon, may be the biggest beneficiary out of the deal, as it would likely produce for both companies.

• Primasia View: As the deal is still in process, we hold a neutral view until further developments unfold.