After years waiting out an industry downturn, Micron Technology Inc. (MU) is preparing to go on offense.

The Boise, Idaho, memory chip maker has struggled along with rivals during a severe oversupply in DRAM memory chips, but its $450 million equity and convertible debt offering announced Tuesday may signal the company now sees an opportunity to thrive.

Weaker chip makers are expected to sell factories to stay alive or are turning to the federal government for support, giving Micron - which already has a sizable cash position - the chance to increase its technology lead and pick up some lucrative assets, with whole acquisitions as a possibility as well.

To be sure, Micron is losing money, and analysts expect more losses over the next few quarters. Shares recently fell 3.5% to $4.16, suggesting investors are at least miffed by the dilutive offering. But unlike South Korean rival Hynix Semiconductor Inc. (000660.SE), which, according to its main creditor, may be planning to raise capital, Micron likely has plenty of cash to survive if market conditions continue to stabilize.

Micron was unavailable for further comment, but the company said in its filing with the Securities and Exchange Commission that it would use the deal's proceeds for working capital, capital expenditures and other transactions. As of March 5, Micron had $932 million in cash and $353 million in long-term debt coming due.

According to analysts, the additional capital could be used to boost its lead in making the lowest-cost chips, or to buy assets from Spansion Inc. (SPSN) or Qimonda AG (QMNDQ), both working to restructure in bankruptcy.

Shares of Spansion recently jumped 63% Wednesday, or 9 cents, to 22 cents, after the world's largest memory chip maker, Samsung Electronics Co. (005930.SE), agreed to pay the company $70 million in a patent settlement.

Additionally, Lazard Capital analyst Daniel Amir noted that Spansion, which has been vocal about selling assets, would be a good chance for Micron to pick up a distressed asset and a new production plant for "very low prices."

The added capital, $250 million in equity and $200 million in convertible debt, could also let Micron accelerate its technology spending. By doing so, it could "significantly improve its cost leadership position," said Daniel Berenbaum of Auriga, capitalizing on the weakened state of Hynix and Elpida Memory Inc. (6665.TO).

The Japanese Elpida was chosen last week as a technology partner by Taiwan Memory Co., a new memory-chip firm being created by the Taiwanese government to aid its struggling industry.

Elpida is providing the new entity with chip making technology in return for a stake in the company, but Micron said it isn't interested in a similar partnership as it doesn't want to turn over the technology.

Elpida also recently raised about Y46 billion through subsidiaries so that Elpida could meet debt covenant requirements.

-By Jerry A. DiColo, Dow Jones Newswires; 201-938-5670; jerry.dicolo@dowjones.com