BOISE, Idaho — A Micron Technology Inc. executive says the computer chip maker has decided that when the time is right, Boise is the best place to build a new manufacturing plant.
Company officials have no definite timeline for a new facility, but say future plans are tied to market conditions and other economic factors that would make expansion viable.
Chief Operating Officer Mark Durcan's comments about a new facility came during a briefing Monday on the company's pending joint venture with Nanya Technology Corp., a Taiwan-based company that also specializes in dynamic random access memory, or DRAM, and other advanced memory products.
Durcan said the venture will enable the companies to cooperate on research and development in the design and production of smaller, more advance memory chip technology.
The cooperative arrangement also allows Micron to lower design costs, share research and manufacturing assets and better compete in the global market, Micron spokesman Dan Francisco said. Final details of the partnership will be completed in coming months, officials said.
"Partnering with Nanya would be significant to Micron as we continue to drive toward the most cost-effective ways to grow and innovate," Durcan said in a statement. "Nanya has proven its capabilities to be a leader in manufacturing technology and is strategically located near our growing customer base."
The news is some of the most positive for a company that has struggled in the last 12 months.
The Boise-based company posted a $262 million loss for the first quarter of 2008, which ended in November. That report followed a series of decisions that led to layoffs for more than 1,000 Boise-area employees.
Company executives blame the big losses on the cyclical nature of the market and an oversupply of chips made by South Korean manufacturers eager to boost market share.
During Monday's briefing, Durcan said the company has decided that when the time is right, Boise is the best place to build a facility capable of producing the next generation of memory chips
Durcan said Boise emerged as the front-runner after an analysis that considered its proximity to existing Micron research and development offices and a series of tax incentives passed by the Legislature three years ago.
A new plant is not likely to create many new jobs, Durcan said, as much as help secure the company's existing work force in the Treasure Valley.
"There is no firm timeline," Francisco told The Associated Press. "Our entire business is dependent on market conditions. All we've done is determine that Boise is the preferred location when we decide to build another wholly owned facility."
Micron stock traded down Monday on the New York Stock Exchange to $7.17 a share, down from the previous day's $7.52.
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