Micron Technology has announced plans to buy Elpida Memory, the third largest maker of memory chips in the world. 

Elpida hasn't had the best of times as of late and the company even filed for bankruptcy earlier this year. Micron will acquire it for $2.5 billion. The deal will see Micron splash out $754 million in cash, while the remaining funds will be aimed at covering Elpida's debt.

The move is expected to expand Micron's manufacturing capacities at a reasonable price. Elpida's factories in Hiroshima, Japan, Rexchip's factory in Taiwan and the same company's testing facility in Akita, Japan, are expected to boost Micron's manufacturing capacity by as much as 50 percent. 

Note that Micron has also announced it is buying 24 percent stake in the Rexchip Electronics Corporation from the Powerchip Technology Corporation. Seeing as how Elpida already owns a 65 percent stake there, Micron should come out of the deal with 89 percent of Rexchip ownership as well. 

More here.