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Elpida, Winbond enter outsourcing agreement

Posted: 16 Nov 2009 ?? ?Print Version ?Bookmark and Share

Keywords:Elpida Winbond deal? DRAM? graphics memory?

Elpida Memory Inc. and Winbond Electronics Corp. signed a memorandum of understanding for Winbond to manufacture DRAMs under contract to Elpida. This outsourcing agreement is just the first step in a business partnership the two companies will pursue further.

The agreement pertains to the supply of GDDR3 and GDDR5 graphic DRAMs for Elpida. Prior to this agreement Winbond and Elpida have been working together to commercialize GDDR3 and GDDR5 DRAM products. Winbond is preparing to begin commercial production of these products by the end of 2009 while Elpida plans to begin purchasing the output in the first half of 2010.

Under the agreement, Elpida and Winbond will now embark on a more formal business relationship. As a first step Elpida will provide Winbond with advanced DRAM process technology and product technology and in return Winbond will allocate certain capacity at its wafer fabs in Taichung to manufacture these DRAM products. Elpida will purchase the product output and sell it to major customers under its own corporate brand name.

"The partnership we are forming with Winbond is tremendously satisfying," said Yukio Sakamoto, Elpida president and CEO. "The combination of Elpida's advanced technology and Winbond's rich product manufacturing experience, which includes graphics memory, will enable us to expand our product lineup across a wide range of applications."

"Winbond is pleased to form a business partnership with Elpida, world-leading DRAM supplier, starting with a graphic DRAM foundry by using current technology. However, to make this partnership a long and lasting relationship, I believe implementing next generation DRAM process technology from Elpida into our fab will be the best solution for both of us. It will enhance the competitiveness of our specialty DRAM, Mobile RAM as well." said Arthur Chiao, chairman and CEO of Winbond.





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