Under the new supply agreements, Micron’s purchase price for Inotera output in year 2015 remains market-based arrangement. Starting from January 1st 2016, the transfer pricing principle will be changed to the margin-sharing arrangement.

“With the yield improvement of 20nm and a ramp from next quarter, we expect the bit growth and high-value-added products in 20nm technology to drive Inotera’s operating performance in year

2016. Through the adjustment of transfer pricing principle, we share the profits with our customer and maintain a long-term partnership,” said Charles Kau, Chairman of Inotera.

“We are looking forward to working together with our customer to continuously optimize cost efficiency by launching advanced technology, and generating the maximum profits for a win-win relationship.”