Backend service supplier Walton Advanced Engineering is expected to benefit from major contracts from Elpida Memory and Winbond Electronics starting in the second quarter of 2010 as the two DRAM makers partner to enter the graphics DDR (GDDR) market, according to a Chinese-language Commercial Times report.

The paper said Winbond is set to kick off volume production of 1Gb GDDR5 using Elpida's designs starting in March. Walton appears the only supplier to provide Winbond with backend services for GDDR chips, the paper indicated without citing sources.

A January 7 DRAMeXchange report suggested that Walton may expand its backend capacity for DDR3 chips for the sake of Elpida's extended partnership with Winbond. Elpida was quoted in previous reports saying it would transfer 40nm process technology to foundry partners that include Winbond to expand production to a higher level.

Walton is scheduled to hold an investors conference on February 2. The memory backend supplier has announced revenues grew 6.8% sequentially to NT$1.6 billion in the fourth quarter of 2009, and saw sales proportion from the DDR3 segment double on quarter to 30%.

By: DocMemory
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