Powerchip, Elpida tie up to build world's largest 12-inch chip foundry

Taiwan 's Powerchip Semiconductor Corp. (PSC) and the Japanese Elpida Memory Inc. signed an MOU in Taipei on December 7 to establish a joint facility in central Taiwan for DRAM production.

  When the PSC-Elpida DRAM fabrication facilities -- to be located in the Central Taiwan Science Park -- begins commercial operations, hopefully in four to five years, the new joint venture will be the world's largest 12-inch chip wafer foundry, with a total planned capacity of 240,000 wafers per month, said PSC Chairman Frank Huang.

  These new DRAM fabrication facilities, carrying a price tag of NT$450 billion (US$13.85 billion) , would also be the largest joint venture project in Taiwan in recent years involving domestic and foreign companies.

  Huang said despite the efforts of Singapore and China to offer attractive packages for such a large-scale investment project, Elpida decided to choose Taiwan as the joint venture's location and to tie up with PSC, reflecting the importance that Elpida has attached to Taiwan 's and PSC's competitiveness in terms of semiconductor manufacturing.

  Also speaking at the MOU signing ceremony, Yukio Sakamoto, president and CEO of Elpida, said PSC and Elpida – partners cooperating perfectly over the past several years -- will strive together concertedly, envisaging a challenge to the world's DRAM leader status in three years.

  "Now it's time for us to make our move into PC DRAM production and become the number one player in the DRAM industry, " said Sakamoto. "We have decided to do so because we have gained credibility for our advanced DDR2 SDRAM, which was backed up by the high productivity at our E300 fab in Hiroshima . Moreover, we are very confident in our 70nm process technology, soon to be in mass production at our E300 fab. We are very happy to be able to transfer this new technology to ramp up our new joint fab," He added.

  He also noted that a combination of Elpida's state-of-the-art technology and PSC's cost competitiveness in DRAM production will definitely translate into outstanding production capabilities in this joint venture, supplying high quality DRAM products at competitive prices.

(Source: Central News Agency)