Elpida, Powerchip Team Up for Massive Taiwan Fab

By Colleen Taylor -- Electronic News, 12/7/2006

Japan-based DRAM supplier Elpida Memory Inc. and Taiwan-based memory maker Powerchip Semiconductor Corp. (PSC) have announced this week they will establish a new joint venture company to operate DRAM fabrication facilities in Central Taiwan science park.

The new fab will have a total planned capacity of 240,000 12-inch wafers per month, the companies said, making this site the largest concentration of 12-inch DRAM fabrication facilities in the world.

Elpida and PSC's joint venture in Central Taiwan science park will act as the companies' DRAM manufacturing base of operations, which will eventually become four 12-inch DRAM fabrication facilities with a combined capacity of 240,000 wafers per month.

Currently the first fab under construction will have a capacity of 60,000 12-inch wafers per month, where the clean room is now being installed. In Q2 of 2007, equipment will be installed and in Q3 mass production will begin on Elpida's 70nm process technology where the first stage capacity will reach 30,000 12-inch wafers per month, the companies said.

This capacity will be split equally between the two largest shareholders, according to the companies.

At the same time, both parties have also agreed to jointly develop a part of next-generation process technology. Elpida and PSC initially will jointly invest $1.24 billion (40 billion new Taiwanese dollars) to establish the new venture, where the new venture will then obtain PSC's current 12-inch fabrication facility in Taichung Houli science park, which is currently under construction. In addition to PSC investing capital, the companies said, PSC will also allocate human resources for a part of Elpida's next-generation DRAM process technology development.