Japan's Elpida Memory has decided on a new
product-specific line manufacturing system for its DRAM (Dynamic Random Access
Memory) plant in Hiroshima, Japan, according to a July 2 Nikkei report.
Pursuant to the new manufacturing scheme, the Hiroshima plant will be divided
into two separate lines, one for mobile device-related DRAM products and the
other for PC-related DRAM devices. Following the implementation of the new
system in July, it is projected that the output of PC-related DRAM will be
reduced by 10% to 20%.
Announcement of the new scheme followed a 140
billion Yen (US$1.46 billion; US$1=95.98 Yen) aid plan approved by the Japanese
government to help the loss-making DRAM manufacturer at the end of June. Of the
140 billion Yen aid, 30 billion Yen (US$312.57 million) will be invested by the
state-backed Development Bank of Japan, and the rest will be on loan from
Development Bank of Japan and other private-owned banks, Reuters reported on
June 30. In addition to the aid, it is reported that Taiwan Memory Company will
inject 20 billion Yen (US$208.38 million) into Elpida as well. Taiwan Memory
Company is a fabless semiconductor company set up by the Taiwanese government
to help the country's DRAM industry. Elpida and Taiwan Memory Company have
formed technology partnership, and Elpida is expected to transfer its 50nm technology
to Taiwan Memory Company for the development of digital electronics and
consumer devices.