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Semiconductor behemoths Micron Technology Inc. (MU - Snapshot Report) and Broadcom Corp. (BRCM - Analyst Report) recently joined forces to develop a new solution to protect against DRAM timing factors. The offering will help to deliver enhanced performance for networking customers.

Designed for the high-performance networking and graphics market, the new solution addresses issues related to DDR3 (Double Data Rate) timing parameter known as tFAW. The new solution is claimed to offer a more flexible, efficient and improved signaling solution. It helps to reduce power consumption, increases speed and provides the latest GPUs with ever-increasing bandwidth for desktops, notebooks and server computing.

According to the Cisco Visual Networking Index, the global IP traffic is expected to grow at a compound annual growth rate (CAGR) of 23% from 2012 to 2017. To satisfy the urge of organizations for higher-bandwidth for their space, Micron provides the most accessible NPU (Numeric Processing Unit) solutions and cost-efficient DDR3 products.

Moreover, these service providers are competing to change their networks by adopting better electrical performance and a high speed networking system. Micron, with this collaboration, will deliver greater network reliability and compatibility. The improved offering addresses the needs of enterprises and optimizes customers’ time to high speed networking markets.

Apart from this, Micron has also developed a new computing architecture, Automata Processor (AP), which enables high-speed execution and reduces the complexities of unstructured data.

Moreover, the other positive factor for Micron is the Elpida acquisition, which has increased wafer manufacturing capacity by approximately 50%, helping it to capitalize on any demand shortage. The acquisition also brought Apple Inc. (AAPL - Analyst Report) on to the customer roster, which will be a positive for future growth. The company is also optimistic about supply/demand balance for DRAM and NAND memory chips in 2013 and 2014, which should support prices.

However, it may not be easy for Micron to capture share from SanDisk Corp (SNDK - Analyst Report), a key player in the NAND zone. Nevertheless, with support from Apple and Intel Corp. (INTC - Analyst Report), its prime NAND customers, the situation could turn in Micron’s favor going forward.

Currently, Micron carries a Zacks Rank #1 (Strong Buy).

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