Elpida, Powerchip Solidfy DRAM Alliance

Elpida Memory, Inc. and Powerchip Semiconductor Corp. (PSC) today finalized their DRAM alliance.

Elpida Memory, Inc. and Powerchip Semiconductor Corp. (PSC) today finalized their DRAM alliance.

The complicated arrangement calls for Elpida to buy 0.15-and 0.13-micron products from PSC beginning in March 2003, while PSC will produce products at a later time useing the Elpida 0.10/0.09-micron process. PSC can develop products using Elpidas latest process technologies, but must provide up to half of its 12-inch DRAM foundry capacity to Elpida.

The agreement helps out both of the second-tier DRAM companies. According to preliminary numbers compiled by iSuppli Corp., Elpida was ranked sixth in DRAM production during 2002, while PowerChip was ranked 11th. Samsung continued to dominate the world DRAM market with a 32.5 percent market share in 2002, followed by Micron, at 18.2 percent. Infineon, Hynix, and upstart Nanya rounded out the top five.

Nanya differentiated itself by concentrating on DDR DRAM production, according to iSuppli, and nearly doubled its market share to 5.5 percent.

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