"After careful evaluation, we are unable to discern a process that would allow the numerous parties involved to reach agreement in a timely manner. As a result, we are withdrawing from the Hynix negotiations," the company said in a brief statement.
Micron began talking to creditors of heavily indebted Hynix last December, talks which culminated in the signing of a memorandum of understanding in April under which Micron would acquire the dynamic RAM operations of Hynix in return for 108.6 million shares and 15% of the remaining company for $200m (£137m).
The deal was approved by Hynix's creditors but rejected by its board during a meeting on Tuesday, which was also the deadline for negotiations spelled out in the MoU.
Among reasons given by the board for its rejection of the deal were that the post-merger restructuring plan had too many problems and that the deal overestimated the value of the Micron stock to be paid for the sale of Hynix's memory business.
Hynix may find it difficult to find another partner, said SK Kim, a DRAM analyst at market research company IDC in Seoul.
"The only company that showed an intention to buy [Hynix] was Micron. If Micron will not continue talks, there will be no other companies," he said.
Slowly improving conditions in the DRAM market may encourage Hynix to go it alone. The company's DRAM operations returned to profitability in the first quarter of this year.