Elpida Memory Inc. will take over some of the manufacturing operations of its parent company NEC to form a new semiconductor manufacturing company on Sept. 1.

The move gives Elpida -- the leading DRAM maker in Japan -- simultaneous 200mm abilities in addition to the company's existing 300mm manufacturing. Specifically, Hiroshima Elpida will lease the property and the 200mm manufacturing facility from NEC Hiroshima. To date, Elpida has outsourced its 300mm wafer manufacturing to NEC Hiroshima.

"As a leading DRAM company, our ability to control our own manufacturing is critical to the development and high-yield production of leading-edge products," said Yukio Sakamoto, president of Elpida, in a statement. "The formation of Hiroshima Elpida enables us to unify production and distribution as a DRAM manufacturer."

Hiroshima Elpida will continue to provide manufacturing outsourcing to NEC Electronics Corp., which was previously carried out by NEC Hiroshima, Elpida said. NEC Hiroshima will act as a management company of assets leased to Hiroshima Elpida, and as employer of contract employees temporarily lent to Hiroshima Elpida. As part of the agreement, 1,360 employees from NEC Hiroshima will be re-assigned to Hiroshima Elpida.

By: Docmemory
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