Intel to Invest US$100 Million in Elpida Memory
TOKYO, June 3, 2003- Elpida Memory, Inc. (Elpida), a manufacturer of Dynamic Random Access Memory (DRAM), and Intel Corporation today announced they have signed an agreement for Intel to invest approximately US$100 million in Elpida Memory in return for non-voting stock.
Elpida Memory plans to use the proceeds from this proposed investment and other intended financing to significantly boost production at its 300-mm, sub-0.11 micron DRAM wafer fabrication plant in Hiroshima, Japan. Assuming timely satisfaction of all closing conditions, including satisfactory completion of due diligence, receipt of necessary internal and regulatory approvals and achievement of a substantial additional funding amount from other investors, the parties anticipate closing the Intel investment in coordination with the closing of the additional financing that Elpida intends to raise later this year.
In addition to the proposed investment, Elpida and Intel have signed a multi-year commercial agreement. As part of the agreement, the companies will share roadmaps in order to develop new DRAM architectures. DRAM is a key component in any computing system, and advancing DRAM technology helps to improve system performance by providing faster memory access to meet the increasing performance requirements of the newest generation architectures. Additional details were not disclosed.
"Elpida is committed to delivering advanced DRAM products for performance-driven markets," said Yukio Sakamoto, president of Elpida Memory. "This proposed investment starts the process of raising the funding we need to increase our capacity to better support our customers' requirements."
"Continued investment in memory technology is strategically important for the industry," said Gidu Shroff, Intel vice president and director of Materials. "Intel's investment will help enable Elpida to continue to develop and produce leading-edge DRAM products. It is important that cost effective memory technology advances as quickly as possible to meet the ever increasing performance demands of Intel computing and communications solutions."
About Elpida Memory, Inc.
Elpida Memory, Inc. is a manufacturer of Dynamic Random Access Memory (DRAM) with headquarters based in Tokyo, Japan, and sales and marketing operations located in Japan, North America, Europe and Asia. Elpida offers a broad range of leading-edge DRAM products. Elpida is a joint venture company formed by NEC and Hitachi, and has been in operation since December 20,1999.
About Intel Corporation
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.
About Intel Capital
Intel Capital, Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. For more information, visit www.intel.com/capital.
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Information in this news release is current as of the timing of the release, but may be revised later without notice.