Crucial 2015 Annual Report Download - page 6

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Other
Other products included primarily NOR Flash, which are electrically re-writeable, semiconductor memory devices that
offer fast read times which are used in wireless and embedded applications.
Partnering Arrangements
The following is a summary of our partnering arrangements as of September 3, 2015:
Entity Member or Partner Micron Ownership Interest Formed/ Acquired Product Market
Consolidated entities:
IMFT (1) Intel Corporation 51% 2006 Non-Volatile
MP Mask (2) Photronics, Inc. 50% 2006 Photomasks
Equity method investments:
Inotera (3) Nanya Technology Corporation 33% 2009 DRAM
Tera Probe (4) Various 40% 2013 Wafer Probe
(1) IMFT: We partner with Intel for the design, development, and manufacture of NAND Flash and 3D XPoint memory
products. In connection therewith, we formed the IMFT joint venture with Intel to manufacture NAND Flash and 3D
XPoint memory products for the exclusive use of the members. The members share the output of IMFT generally in
proportion to their investment. We sell a portion of our products to Intel through IMFT at long-term negotiated prices
approximating cost. We generally share with Intel the costs of product design and process development activities for
NAND Flash memory and 3D XPoint memory. The IMFT joint venture agreement extends through 2024 and includes
certain buy-sell rights. Commencing in January 2015, Intel can put to us, and commencing in January 2018, we can
call from Intel, Intel's interest in IMFT, in either case, for an amount equal to the noncontrolling interest balance
attributable to Intel at that time. If Intel elects to sell to us, we can elect to set the closing date of the transaction to be
any time within two years following such election by Intel and can elect to receive financing of the purchase price
from Intel for one to two years from the closing date. (See "Part II – Item 8. Financial Statements and Supplementary
Data – Notes to Consolidated Financial Statements – Equity – Noncontrolling Interests in Subsidiaries – IMFT.")
(2) MP Mask: We produce photomasks for leading-edge and advanced next-generation semiconductors through MP
Mask, a joint venture with Photronics. On March 24, 2015, we notified Photronics of our election to terminate MP
Mask effective in May 2016. Upon termination, we have the right to acquire Photronics' interest in MP Mask for an
amount equal to the noncontrolling interest balance. Since its inception, we and Photronics have each owned
approximately 50% of MP Mask. We purchase a substantial majority of the photomasks produced by MP Mask
pursuant to a supply arrangement. (See "Part II – Item 8. Financial Statements and Supplementary Data – Notes to
Consolidated Financial Statements – Equity – Noncontrolling Interests in Subsidiaries – MP Mask.")
(3) Inotera: We partner with Nanya for the manufacture of DRAM products by Inotera, a Taiwan DRAM memory
company. Since January 2013, we have purchased all of Inotera's DRAM output at prices reflecting discounts from
market prices for our comparable components under a supply agreement. In the second quarter of 2015, we executed
a supply agreement, to be effective beginning on January 1, 2016 (the "2016 Supply Agreement"), which will replace
the current agreement. Under the 2016 Supply Agreement, the price for DRAM products sold to us will be based on a
formula that equally shares margin between Inotera and us. The 2016 Supply Agreement has an initial two-year term,
followed by a three-year wind-down period, and contemplates negotiations in late 2016 with respect to a two-year
extension, and annual negotiations thereafter with respect to successive one-year extensions. Upon termination of the
initial two-year term of the 2016 Supply Agreement, or any extensions, we would purchase DRAM from Inotera
during the wind-down period. Our share of Inotera's capacity would decline over the wind-down period. (See "Part II
– Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Equity
Method Investments – Inotera.")
(4) Tera Probe: We have an approximate 40% ownership interest in Tera Probe, an entity that provides semiconductor
wafer testing and probe services to us and others.