Nanya Technology has announced the completion of its investment in Micron through private placement, and Micron's takeover of Inotera Memories was announced on December 6.

Nanya has acquired 57,780,138 Micron shares for a total of NT$31.46 billion (US$981.16 million), which gives the Taiwan-based firm a 5.26% stake in the US company. Nanya has also obtained its option rights to use Micron's 1x and 1y DRAM technologies.

Nanya indicated it will also transfer all of its holdings in Inotera to Micron's Taiwan unit - Micron Semiconductor Taiwan (MST) - for NT$30 per share, or a total of NT$47.62 billion.

Nanya's participation in Micron's private placement and sale of its Inotera shares are the conditions enabling Micron's buyout of Inotera to materialize. Micron today announced that Inotera's share-swap transaction with MST was completed today.

"We are excited to finalize the Inotera acquisition which will generate significant financial and strategic benefits for the company," said Micron CEO Mark Durcan. "We expect immediate accretion to DRAM gross margins, earnings per share and free cash flow along with enhanced operational efficiency as we align Inotera with our global manufacturing operations."

In addition, Nanya noted its existing joint-venture contract with Micron will be terminated when Inotera becomes a unit of Micron.

Seperately, Nanya president Pei-Ing Lee disclosed the company will start making 20nm DRAM chips in small volume in the second quarter of 2017, and production will expand in the following quarter. Nanya is looking to covert half of its total wafer starts to 20nm process technology in the third quarter of 2017, according to Lee.

Nanya is capable of producing 60,000 12-inch wafers using 30nm process technology per month.