Intel closes new Optane (3D XPoint) supply deal from Micron

Intel and Micron joined forces in 2015 to launch a new type of memory, the so-called 3D XPoint memory. In 2018 the two companies decided to discontinue the joint venture. But with the current rough seas, they are moving forward together again on the topic of 3D XPoint products.

Terms of the agreement are confidential but as Wells Fargo analyst Aaron Rakers notes: “Given Micron’s entire ownership of the 3D Xpoint [another name for Optane], we would assume that the new wafer supply agreement reflects net-positive pricing and forecast terms for Micron.” Micron supplies Intel with 3D XPoint wafers made at its Lehi, UT fab.

Jim Handy, a senior analyst at Objective Analysis, told Blocks & Files: “Intel is losing money in its NVM Solutions Group (NSG) because 3D XPoint is proving very unprofitable to produce. By my estimate, Intel lost about $2 billion on 3D XPoint in each of 2017 and 2018, and $1.5 billion in 2019.”