FTC seeks more data on Intel flash spinoff

Antitrust regulators in the US asked Intel and STMicroelectronics for further data on their planned flash spinoff.

US government antitrust regulators have asked Intel and STMicroelectronics NV to provide more information about their plan to spin off their flash memory unit into a new company, the vendors said Thursday.

The US Federal Trade Commission made the request as part of its regulatory review in an effort to ensure the deal does not violate antitrust laws, according to Intel. If FTC investigators approve the terms, Intel and ST will be able to close the deal after a 30-day waiting period, the company said.

"These kinds of transactions are reviewed by the FTC and it's not unusual for them to come back and ask for more information," said Intel spokesman Tom Beermann. Intel plans to comply with the request, but gave no deadline for providing the new information.

"As part of the regulatory review, they do look at antitrust issues. This is a fairly complicated deal because there are three partners and there are different types of technology, and it is a fairly large deal," Beermann said.

Intel and STMicroelectronics will share ownership of the new semiconductor business with ST holding a 48.6 percent stake, Intel owning 45.1 percent and private equity firm Francisco Partners LP holding 6.3 percent. The new company will be based in Switzerland and incorporated in the Netherlands. It will compete against flash vendors including Samsung Electronics Co., Toshiba and Spansion Intel's main chip rival AMD spun off its flash unit in December 2005 to create Spansion.

Intel and ST announced plans for the new business in May and expect it to employ about 8,000 staff. They will make NOR and NAND-type flash chips, which are typically used for storing data in consumer and industrial products such as cell phones, MP3 music players and digital cameras.

Intel has struggled for years to make a profit from its flash business, and earlier in May said it would lay off as many as 1,000 workers when it closed an outdated flash plant in New Mexico.

A spokeswoman for ST said the company also planned to comply with the FTC request, but would not confirm whether it was related to antitrust concerns.

"We will provide all the information they need. The FTC needs it by the second half of 2007," said ST spokeswoman Carol Brown. "This is just part of the approval process."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ben Ames

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?