- Strong Banks, Weak Credit: Treasury Rethinks TARP
- How Many US Consumers Will Shop this Weekend?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- World's Largest Share Issue Priced at Deep Discount
- Obama says Boosting US Jobs is Top Priority
- Playboy to Outsource Most Magazine Operations: Report
- Why the Dollar Will Likely Stay Weak for Some Time
- EU Drops Proceedings Against Qualcomm
- Appeals Court Denies Microsoft's Alcatel Petition
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- The Social Media Gaming Threat
- China Eastern to Complete Shanghai Air Buy by End '09
- Gold Will Collapse Like Oil Did in 2008: Charts
- Paul: Audit the Fed
- Prepare For Large Decline In Stocks, Next Year?
- JAL Slides to Record Low on Bankruptcy Jitters
- Nielsen Ratings Coming to Video Games
Text Size 
Japanese chip maker Elpida Memory will outsource production of advanced PC memory chips to Taiwan's No.3 DRAM maker ProMOS as it seeks to cut costs and better compete against bigger South Korean rivals.
 |
Elpida, in a neck-and-neck race with U.S. chipmaker Micron Technology
[MU
Loading...
()
] to be the world's No.3 DRAM maker, said it will outsource production of DDR3 type DRAM memory chips to meet rising demand from PC makers who are focusing on power consumption and faster processing.
The tie-up will allow ProMOS, which is seeking to diversify into the contract chip business, to lift its plant usage rate at its 300-mm plant in Taichung, central Taiwan.
Chipmakers are hurrying to adopt new technologies and grab market share in DDR3 as the chip sector emerges from a prolonged slump.
Elpida, which secured a $2 billion lifeline earlier this year including public money, in particular is rushing to narrow the technology and market share gap between it and bigger South Korean rivals Samsung Electronics and Hynix Semiconductor.
Elpida will provide 65-nanometre process technology to ProMOS for mass production in the second half of 2010. Outsourced production is likely to be for about 30,000 to 40,000 wafers a month.
Elpida, which reported its first operating profit in eight quarters on Thursday, is cementing ties with its former Taiwan rivals, and has entered into a capital tie-up with Taiwan's state-backed Taiwan Innovation Memory (TIMC).
ProMOS has also said it would partner with TIMC, but has given no details.
Shares in Elpida, which on Thursday said it is considering investing in more lithography machines to boost output next year, were up 4.3 percent, outperforming Tokyo's electrical machinery sub-index, which rose 2.2 percent.
- A diet high in fat and sugar might actually be good for your portfolio.
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- From the AIG&T to the Merrill Lychee, Jane Wells lists this year's fashionable holiday cocktails.
- The show attracts a big TV audience every year, but this year it may take on even more importance.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
Data is a real-time snapshot *Data is delayed at least 15 minutes