Micron (MU) - Get Report is buying out Intel's (INTC) - Get Report stake in a flash memory joint venture for $1.5 billion, the chipmakers said Wednesday.

The venture produces 3D XPoint flash memory, which Micron says is 1,000 times faster than NAND memory.

Micron CEO Sanjay Mehrotra predicted that the technology will be an "essential solution for new data-hungry applications," in a press release announcing the deal.

Intel noted that Micron's statement is a pre-announcement, and would cause no near-term changes in its plans. "They can't officially make the call until January 1, 2019," the company said in a written statement. "The operation of the IMFT factory would not change until after the close of the call, which is at Intel's discretion for up to one year."

Shares of Micron gained 0.4% to $41.48 Thursday morning, while Intel was flat at $44.97.

Micron and Intel initially formed the business in 2006 to produce NAND memory, and have invested $6 billion in the operations. The companies said in July that they would end the partnership.

Micron will introduce 3D XPoint products in late 2019, and said that sales should ramp up in 2020. Intel will buy products from the business for up to a year. While Micron would not discuss terms of the supply contract, Intel purchased $500 million of products from the JV last year.

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