Monday, August 25, 2003
Elpida Memory has agreed to supply Kingston Technology the world's largest producer of memory modules, with cutting-edge semiconductor memory technology as soon as this year.
Elpida will supply double-data-rate, high-speed DRAM products that meet the low energy consumption DDR2 standard. DDR2 products are compatible with Intel s new microprocessor, currently under development, and may become the primary DRAM from next year and beyond.
Although the details of the agreement have not been released, Kingston apparently will procure an amount equivalent to 5-10% of Elpida's production capacity. The DRAM chips will be used in modules made under the Kingston brand as well those supplied to Elpida on an OEM basis. The sole domestic DRAM manufacturer has almost no track record supplying goods to Kingston.
Kingston specializes in manufacturing memory modules with 10 or more DRAM chips. The modules facilitate attaching the memory to the motherboard in the personal computer assembly process.
Kingston will also participate in Elpida's plan to raise 112.8 billion yen in capital by purchasing 6 billion yen in nonvoting shares by October. Elpida will use the money to help fund its 81.5 billion capital improvement plan aimed at increasing DRAM production capacity at its Hiroshima Prefecture plant by more than 400%.
Elpida is a joint venture between NEC Corp and Hitachi Ltd, which have already decided to provide capital, as has Intel.
By: DocMemory
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