PowerChip Semiconductor Corp. (PSC) and Elipda Memory Inc. are expected to co-open a 300mm DRAM fab in Taiwan soon, suggesting their ambition to realize the goal of becoming the world’s No.1 computer memory-chip supplier.

People familiar the project pointed out that PSC recently completed an analysis of the investment, originally leaning toward the plan that the two companies each hold a 50% stake, and share research and development results and production capacity.

According to the Japan-based Elpida’s statistics, the two companies’ 300mm fabs will have a total output capacity of 180,000 wafers by then end of this year, pushing them ahead of Samsung to become the world’s No.1 DRAM chip-making alliance.

The planned fab is projected to have capitalization of NT$10 billion (US$312.5 million at US$1:NT$32) and output capacity of 40,000-45,000 wafers per month.

Total investment in the fab is estimated at NT$80-100 billion (US$2.5-3.1 billion). The two companies planned to pay initial capital and list the joint venture to raise remaining capital at minimum.

Chairmen of both companies recently visited Taiwan’s Ministry of Economic Affairs (MOEA), indicating the deal was nearing finalization. The two companies are expected to announce the plan in October at the earliest. So far, the two companies have kept a low profit toward the deal, declining to make any comment.

Foreign institutional investors pointed out behind the deal is Taiwan’s excellent track record in running 300mm fabs at fair low costs. They noted that Elpida eventually chose a Taiwanese chipmaker as its partner although it vowed earlier to partner with Singapore and mainland Chinese chipmakers.

The investors pointed out that PSC and ProMOS Technologies Inc. have run their 300mm fabs at 85% and 80% capacities, respectively. Inotera Memories Inc. has even operated the tool at 100% capacity. The three companies are Taiwan’s top three DRAM chipmakers.

By: DocMemory
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