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Japanese DRAM chip maker Elpida Memory said it will outsource production to Taiwan's Winbond Electronics, as it tries to consolidate its position in Taiwan against U.S. rival
Micron.
 |
AP |
Elpida, which has a similar outsourcing agreement with Taiwan's No.3 DRAM maker ProMOS, has been seeking allies to gain political and technological clout in Taiwan against the Micron camp, which spans Nanya and the two firms' joint venture Inotera.
Elpida, vying with Micron to be the world's No.3 DRAM maker, said on Wednesday that it will provide chip-making technology to Winbond, and will likely outsource production of 65-nanometre chips some time next year.
The deal sent Elpida shares up 1.2 percent, outperforming a 0.8 percent rise in Tokyo's electrical machinery sub-index.
Elpida, which also has a production venture with Taiwan's biggest DRAM maker Powerchip Semiconductor, is desperate to keep up with bigger South Korean rivals Samsung Electronics and Hynix Semiconductor.
It hopes its ties with Taiwanese makers will help it ramp up production cheaply as the embattled DRAM market shows signs of recovery.
Elpida plans to buy a small stake in state-backed Taiwan Innovation Memory Co, formed this year to rescue the island's DRAM industry and which will outsource manufacturing to local DRAM makers. In return, TIMC is to take a matching stake in Elpida.
Elpida already has an outsourcing agreement with Winbond on graphics DRAM chips, designed using technology from failed German chipmaker Qimonda. The chips will go on sale in the first half of 2010, it said.
Elpida, Japan's sole maker of dynamic random access memory, reported its first operating profit in eight quarters on Thursday. It secured a $2-billion lifeline including public funds earlier this year.
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