Japanese memory chip maker Elpida Memory Inc will join forces with three Taiwanese counterparts to produce small dynamic random access memory (DRAM) chips to take on competition from South Korea, according to a Japanese newspaper report yesterday.
The Nihon Keizai Shimbun reported that Elpida would announce this month at the earliest that it will work with Taiwan’s ProMOS Technologies Inc (茂德科技), Rexchip Electronics Corp (瑞晶電子) and Powerchip Technology Corp (力晶科技) in small-sized DRAM production cooperation.
According to the report, the development is expected to reduce production costs because the cutting edge technology will boost the volume of DRAM production by 25 percent on every wafer.
The report said Elpida would provide the technology to the three Taiwanese firms, while all four will use the existing facilities of the Taiwanese partners to churn out small DRAM chips to be used in computers or servers.
The report said the four companies would not need to spend more to build new production capacity, although small improvements in the existing 65-nanometer production process of the three Taiwanese firms would be needed.
The report added that the cooperation is expected to boost competitiveness through cost savings and help the memory chip makers in Japan and Taiwan compete with Samsung Electronics and Hynix Semiconductor of South Korea.
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