Micron Technology announced its deal to sell its Lehi, Utah, fab to Texas Instruments – for $1.5 billion.

The transaction to sell the semiconductor manufacturing unit comprised of $900 million in cash from TI, and $600 million in value from select tools and other assets. Micron has sold some of these assets and will retain the remainder to redeploy to its other manufacturing sites or sell to other buyers.

Texas Instruments will offer all Lehi site team members the opportunity to become employees upon the closing of the sale and intends to deploy its own technologies at the site. The sale is expected to close later this calendar year.

“Micron’s Lehi, Utah, facility has a strong history of technology innovation and leading-edge semiconductor manufacturing,” said Micron President and CEO, Sanjay Mehrotra.

Micron announced its intent to sell the Lehi facility in March 2021, and confirmed plans to end production of 3D XPoint technology and pursue new memory solutions for data centers, enabled by the CXL interconnect.

CXL delivers connectivity between compute, memory and storage, addressing increased customer workload requirements driven by the broad proliferation of artificial intelligence and data analytics.

Weil, Gotshal & Manges LLP served as legal counsel to Micron, and Macquarie Semiconductor and Technology served as transaction advisors.