Elpida Memory to partner with Taiwanese companies for DRAM production

Elpida Memory Inc has announced that it is joining forces with three Taiwanese companies to produce random access memory (DRAM) chips.

The Japanese chip maker hopes this will help it compete with manufacturers who are doing the same thing in South Korea, according to a report in the Taipei Times and the Nihon Keizai Shimbun.

According to the sources, Elpida will announce this month at the earliest that it will work with Taiwan’s ProMOS Technologies Inc, Rexchip Electronics Corp and Powerchip Technology Corp  in small-sized DRAM production cooperation. The development is expected to reduce production costs because the technology is said to boost the volume of DRAM production by 25 percent on every wafer.

Elpida is going to 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.

It is also thought that 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.