Elpida to buy Powerchip's DRAM operations: report

Japan's leading chip maker Elpida Memory will take over the DRAM operations of Taiwan's Powerchip Technology in a bid to increase competitiveness amid falling prices, the Nikkei said Monday.

Powerchip will end production of its own DRAM chips, used in personal computers, and will focus exclusively on production for Elpida, which plans to eventually acquire Powerchip's main production facilities, the daily said.

Falling prices of DRAM chips has accelerated the talks between the two partners, who plan to finish the negotiations by the end of March, the Nikkei said.

Elpida had a 17.4-percent share of the global DRAM market in 2009, while Powerchip held 2.1 percent, the Nikkei said.

Samsung led the market with a 33.6 percent share, followed by South Korean rival Hynix Semiconductor with 21.6 percent, the Nikkei said.

The global DRAM market came to around four trillion yen (48.7 billion dollars) in 2010, with products for PCs accounting for 80-90 percent, the Nikkei said.

(c) 2011 AFP