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Micron zones in on Asia with Elpida buyout

Posted: 02 Aug 2013 ?? ?Print Version ?Bookmark and Share

Keywords:NAND? DRAM? manufacturing?

Following Micron's announcement that it has finalised its merger with Elpida and subsidiary Rexchip, the newly formed group will be able to combine production capacities from Taiwan, North America and Japan to organise duties more effectively amongst its various divisions and become one of the three largest DRAM manufacturers in the industry next to SK Hynix and Samsung, according to research firm TrendForce.

Seeing as how Micron's Singapore Tech plant is beginning to allocate capacity from DRAM products to NAND Flash, there will unlikely be a lot of speciality DRAM left for the future. The Tech plant is expected to become Micron's major NAND flash production facility, whereas the plants in Taiwan and Japan will each be focused on manufacturing DRAM-related components.

Elpida's Hiroshima plant currently produces up to 100K wafers on a monthly basis. Of these, about 90% will be used for mobile DRAM in order to satisfy customer demands. Micron's current plan is to use Elpida's expertise in DRAM development and to establish a critical DRAM research department within the Hiroshima plant.

In Taiwan, both Rexchip and Inotera will serve as Micron's crucial PC DRAM production centres, given that they are able to produce a combined total of at least 200,000 wafers. Rexchip is known to have switched from concentrating on only PC DRAM to manufacturing both PC DRAM and mobile DRAM. Inotera, on the other hand, has placed a good degree of emphasis on PC DRAM and server DRAM, and will likely begin increasing the wafers intended for mobile DRAM.

With Micron getting its hands on Elpdia's mobile DRAM technology, and with its existing advantages in the field of NAND Flash production, the company will likely begin releasing its own line of eMCP/MCP products, says TrendForce.

Based on the latest business strategy presented by Micron, more of its business centres will be heading towards Asia since majority of the production will be taking place in the region. This will facilitate the implementation of major manufacturing developments as well as critical adjustments

The new Micron group is expected to produce up to 350,000 DRAM wafers per month, according to TrendForce. Such volume is significantly higher than the projected output of SK Hynix (270,000) and Samsung (360,000).

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