Asia Express - Consumer Electronics
Elpida Likely to Stake in Taiwanes Chipmakers
October 08, 2010
Japanese Elpida Memory's President said in an interview that the company is planning to take stakes in Taiwanese chip manufacturers in order to compete with Korean Samsung, according to an October 7, 2010 report by Bloomberg. It is reported that the three possible targets are Powerchip Technology, ProMOS Technologies, and Winbond Electronics. Elpida is considering buying 20% to 30% of shares, but the President said that Elpida has not engaged in negotiation with any of the above-mentioned companies yet. Other choices for Elpida include cross-shareholdings, forming a holding company, or cooperating with Taiwanese DRAM (Dynamic Random Access Memory) chipmakers Nanya Technology and Inotera Memories.

It is estimated that Samsung injects approximately US$10 billion in chip production each year, according to Bloomberg again. Elpida believes that only through cooperating with each other will Taiwanese and Japanese chipmakers to challenge Samsung in terms of production scale.