Heard on the Beat: AMD-ST to merge memory units?

One analyst said that "it is possible" that AMD and ST would reportedly combine their memory operations even though there is no word if the two companies are actually talking.

Another analyst said that it makes no sense that AMD and ST would combine their operations, given the problems with their respective units.

In April, Spansion LLC, the flash memory venture of AMD and Fujitsu, filed for an IPO, likely indicating AMD is jettisoning its unprofitable memory unit.

With the flash memory market plagued by a capacity glut and falling prices, memory suppliers have undergone rough sledding in recent months, Spansion being no exception. Analysts have called for AMD to focus on its growing microprocessor business by withdrawing its stake in the venture. AMD owns 60 percent of Spansion (see April 13 story).

At the same time, STMicroelectronics NV is considering selling its memory business, according to reports (see May 24 story).

A newsletter from Semico Research Corp. refers to the Wall Street Journal stating that ST is considering selling its memory business. The newsletter goes on to observe that with Intel taking flash memory market share from ST in set-top boxes and the overall NOR market going into decline, the memory group at ST appears a reasonable target for a cut.