Tsinghua will have access to both DRAM and NAND chips
Previously in this series, we discussed Tsinghua’s recent acquisition spree to become a mammoth player in the technology space. Through the purchase of mobile chip companies Spreadtrum Communications and RDA Microelectronics, Tsinghua managed to become China’s largest chip design firm in 2013, as reported by the Wall Street Journal.
Through the Micron Technology (MU) acquisition, Tsinghua Group would get access to DRAM (dynamic random access memory) and NAND memory chips used in personal computers. Smartphones, cameras, and other mobile devices use NAND chips to store music, pictures, and other data. Micron supplies DRAM products to traditional server vendors and cloud infrastructure equipment vendors. As a result, the broad market shift from traditional to cloud platforms would also benefit Micron.
Micron manufactures the majority of its chips in the US. However, it has manufacturing facilities in Asia—including Singapore, Japan (EWJ), and Taiwan.
Tsinghua’s domain expertise could match Samsung’s edge
As the above chart shows, the DRAM space is dominated by Samsung Electronics (SSNLF). It has a 39.60% market share. SK Hynix and Micron are other leading players. In the NAND flash space, apart from Samsung and Micron, Intel (INTC), SanDisk (SNDK), and SK Hynix are other major players.
If Tsinghua is successful in clearing all of the hurdles regarding Micron’s takeover, it would be able to compete with leaders in this space—especially Samsung and SK Hynix.