Elpida will invest about US$5 billion (540 billion yen) to build a 12-inch DRAM wafer fab in Suzhou, Jiangsu Province, China cooperate with Suzhou enterprises. Although Elpida has been in red ink for three consecutive quarters and most DRAM manufacturers has made plans to cut their capital expenditure in succession, Elpida still determined to invest such a large amount of capital in China.
CEO of Elpida Yukio Sakamoto denoted that the aims for the movement are to build profitable production system to sustain the company’s competitiveness and to compel competitors to exit the market by expanding production continuously during this life-and-death period.
He said that this does not show that the company predicted DRAM market will recover. The new fab will adopt the most advanced technology to produce 50nm chips which will double DRAM output, helping to increase profit.
It is also revealed that local government determined to derate 10 year’s sale tax for the new plant.
Elpida’s Taiwan partner PSC noted that the company does not participate in the Suzhou investment plan. As the exact schedule has not been determined for the construction of the new plant, PSC predicted that this new movement by Elpida will not influence DRAM market in short term.
Elpida will invest about US$5 billion (540 billion yen) to build a 12-inch DRAM wafer fab in Suzhou, Jiangsu Province, China cooperate with Suzhou enterprises. Although Elpida has been in red ink for three consecutive quarters and most DRAM manufacturers has made plans to cut their capital expenditure in succession, Elpida still determined to invest such a large amount of capital in China.
CEO of Elpida Yukio Sakamoto denoted that the aims for the movement are to build profitable production system to sustain the company’s competitiveness and to compel competitors to exit the market by expanding production continuously during this life-and-death period.
He said that this does not show that the company predicted DRAM market will recover. The new fab will adopt the most advanced technology to produce 50nm chips which will double DRAM output, helping to increase profit.
It is also revealed that local government determined to derate 10 year’s sale tax for the new plant.
Elpida’s Taiwan partner PSC noted that the company does not participate in the Suzhou investment plan. As the exact schedule has not been determined for the construction of the new plant, PSC predicted that this new movement by Elpida will not influence DRAM market in short term.
