Compaq cuts Micron in for $20B chip deal

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Compaq cuts Micron in for $20B chip deal

Compaq will make Micron its largest supplier of memory chips – a deal sources value at more than $20 billion.

The 5-year arrangement comes just as recently rising DRAM prices are squeezinge profits out of the PC business.

Sources say Compaq is trying to combat fluctuations in memory prices by aligning with one strong memory partner. The Houston firm also chose Micron because of its global distribution facilities, which will play into Compaq’s initiative to streamline its own PC manufacturing operations.

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