Elpida outsources to Winbond in DRAM manufacturing partnership
The outsourcing agreement pertains to the supply of GDDR3 and GDDR5 graphic DRAMs for Elpida and is the first step in a broader business partnership the two companies intend to pursue.
By Suzanne Deffree, Managing Editor, News -- EDN, November 11, 2009
Winbond Electronics Corp will manufacture DRAMs under contract for Elpida Memory Inc as the first step in a broader business partnership the two companies intend to pursue.
The outsourcing agreement pertains to the supply of GDDR3 and GDDR5 graphic DRAMs for Elpida. Winbond and Elpida said that prior to the deal announced today the two companies had been working together to commercialize GDDR3 and GDDR5 DRAM products.
Winbond expects to begin commercial production of these products by year's end. Elpida plans to begin purchasing the output in the first half of 2010.
Through the agreement, Elpida and Winbond will move to a more formal business relationship. That relationship will initially see Elpida provide Winbond with advanced DRAM process technology and product technology. In return Winbond will allocate certain capacity at its wafer fabs in Taichung, Taiwan, to manufacture the DRAM products. Elpida will sell the output to major customers under its own corporate brand name.
"The partnership we are forming with Winbond is tremendously satisfying," said Yukio Sakamoto, Elpida's president and CEO, in a statement today. "The combination of Elpida's advanced technology and Winbond's rich product manufacturing experience, which includes graphics memory, will enable us to expand our product lineup across a wide range of applications."
Arthur Chiao, CEO and Chairman of Winbond, also said his company is pleased to form a business partnership with Elpida. However, he added, "to make this partnership a long and lasting relationship, I believe implementing next generation DRAM process technology from Elpida into our fab will be the best solution for both of us. It will enhance the competitiveness of our specialty DRAM, Mobile RAM, as well."
