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NEC, Elpida forge display driver JV

Posted: 24 Jun 2008 ?? ?Print Version ?Bookmark and Share

Keywords:joint venture? display driver IC? memorandum of understanding?

NEC Electronics Corp. and Elpida Memory Inc. have entered a joint venture agreement to develop, design and sell display driver ICs.

The companies have signed a memorandum of understanding to enter into a joint-venture agreement by the end of September and incorporate a new company by the end of 2008. NEC will hold approximately 80 percent and Elpida will hold approximately 20 percent of the new company stakes.

Both companies have also agreed that, in addition to manufacturing at NEC, the new joint venture will outsource its production to Elpida's Hiroshima plant. The two firms will work out the details of the plan as they move forward.

The basic agreement is the result of an alignment of views between NEC, which aims to grow its display driver IC business by boosting production efficiency, and Elpida, which aims to utilize efficiently its 300mm production line.

The new joint venture company will develop process technology to accelerate die size shrinkage by applying Elpida's DRAM process technology to NEC's advanced driver IC development technology. In addition, the new company will pursue cost competitiveness through high-volume production of driver ICs utilizing a 300mm manufacturing line.





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