The BBC reports that leading chip manufacturer Intel is to merge its flash memory business with European rival STMicro, following the European firm’s long hunt for a commercial partner.
Once the deal is finalised, private equity group Francisco Partners is to buy a 6.3 per cent stake in the new company at a cost of £75 million.
The demand for flash memory is continually on the rise as an increasing number of devices, such as mobile phones, digital cameras and MP3 players, look to increase their storage options. Recently, a number of firms, such as Dell, have started offering PCs and laptops that favour solid-state flash memory instead of mechanical hard drives.
Shares in STMicro rose more than five per cent following the news.