Asia Express - Consumer Electronics
Elpida Plans to Build Factories in China, Taiwan
June 11, 2010
Elpida Memory president Yukio Sakamoto said the company plans to set up factories in China and Taiwan to meet demand and cut tax expenses, Bloomberg reported on June 7, 2010. It is expected that Elpida will spend US$1.8 billion to accelerate the construction of a second manufacturing plant at its Taiwanese unit, Rexchip Electronics, according to a June 8 report by Taiwan's Commercial Times. Elpida is also scheduled to build its first DRAM (Dynamic Random Access Memory) factory in China in collaboration with an unspecified Taiwanese chipmaker by 2012 at the earliest.

With the establishment of new factories, Elpida expects to meet the increasing demand for high-performance DRAM, according to the Bloomberg report. Sakamoto also believed that China will surpass Japan as the world's second-largest economy in 2010. It is deemed beneficial for Elpida to begin manufacturing in China to avoid tariffs and exchange rate fluctuations. Hynix Semiconductor and Samsung Electronics have both increased their spending budgets for 2010 as well, and it is believed that their moves have contributed to Elpida's present construction plan.