Elpida to Contract Rexchip to Make Mobile RAM Chips

Taipei, Feb. 25, 2011 (CENS)--Elpida Memory Inc. will contract Rexchip Electronics Corp., a DRAM joint venture it set up with PowerChip Semiconductor Corp. (PSC), to make mobile RAM chips for it beginning the third quarter this year, when its factory in Hiroshima will face capacity shortage because of excessive orders.

Elpida President and Chief Executive Yukio Sakamoto said yesterday in Taiwan at a press conference arranged to declare the company’s Feb. 25 issue of Taiwan Depository Receipt (TDR) units.

As it is the first time for Elpida to designate a foreign manufacturer to make the profitable niche memory chips for it, industry executives interpreted the contract as Elpida’s determination to choose Taiwan’s manufacturers as its partners to combat South Korean for global leadership in the memory chip industry.

In light of the collapse of standard DRAM market, Elpida has shifted to mobile RAM manufacturing. Samsung has cracked the market to challenge Elpida with its formidable output volume. Although leading all of its competitors in this profitable sector with its 30nm process technology vs. others’ 40-50nm process, Elpida is growingly strained in capacity supply based on its goal of bagging half of the global market this year.

Sakamoto said his company had commanded around 40% of global market for mobile RAM chips until the end of last year. He also estimated mobile RAM production to account for 50% of the company’s revenue this year, up from last year’s 30-35%, in conjunction with the company’s market scheme.

Elpida executives pointed out that Rexchip will make 10,000-20,000 wafers of mobile RAM chips a month using 40nm 4F2 process technology. At the end of this year, Rexchip, Sakamoto said, will introduce 35nm process to the chips.