Elpida is confident it will be able to double its market share to 20% in 2006, as it is aggressively increasing its 12-inch wafer capacity, according to company president and CEO, Yukio Sakamoto.

Elpida currently has a monthly capacity of 46,000 8-inch wafers at its E200 fab and 35,000 12-inch wafers at its E300 fab, Sakamoto stated. Equipment is being moved-in at its new 12-inch wafer fab and the fab will be ready for production in March 2006, with a planned monthly capacity of 22,000 wafers. Sakamoto stressed that the company should then be able to increase its market share to 20%.

In order to remain competitive, Elpida will continue partnering with Taiwan testing and packaging house Powertech Technology (PTI), and Elpida will also secure sufficient DRAM capacity from China foundry Semiconductor Manufacturing International Corporation (SMIC). Elpida also aims to advance its process nodes by ten nanometers each year, Sakamoto noted.

Although maintaining a positive outlook for its market share, Elpida admitted that Japan-based chipmakers are facing relatively low gross margins, especially compared to other Asian chipmakers. Sakamoto stated Korea-based chipmakers have gross margins as high as 39%, while Taiwan’s are at 27%, US is 22%, Japan at 8% and Europe at 7%. The rising threats from rival Hynix Semiconductor should not be underestimated as well, Sakamoto added.

By: DocMemory
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