Elpida Memory Raises 81.5 Billion Yen in Investments
TOKYO, JAPAN, June 5, 2003- Elpida Memory, Inc(Elpida),a provider of Dynamic Random Access Memory(DRAM) today announced that it has received agreements for a total of 81.5 Billion Yen(approximately $687 Million*) in investments. The total amount also includes a proposed investment of approximately 12 Billion Yen ($100 Million) from Intel Corporation, subject to receipt of regulatory approvals, funding commitments from other investors, and other conditions, as well as investments of 9.5 Billion Yen($80 Million) from Hitachi, and 9.5 Billion Yen($80 Million) from NEC, which each company previously announced on June 3,2003. Other investor names are not being disclosed.
Combined, these investments will fund the purchasing new production equipment for Elpida's 300 mm silicon wafer manufacturing plant in Hiroshima, Japan.
According to Semico Research, Elpida currently holds the number six position in the DRAM market with 5.1% market share. Elpida has been taking steps to improve its overall position to become a top-tier DRAM supplier with a target of approximately 15% market share by 2006.
"To remain competitive in the DRAM industry, Elpida must build on its established technology leadership and increase its production capacity for high-end DRAM products for the advanced computing, mobile communications and digital consumer markets," stated Yukio Sakamoto, president of Elpida Memory, Inc. "This new funding now enables us to purchase all of the equipment we need to ramp our internal production at our Hiroshima fab."
Elpida's 300 mm wafer manufacturing facility commenced production in January 2003 and currently produces 3000 wafers per month. Following the purchase of new production equipment for the fab later this year, Elpida's capacity will increase to 15,000 wafers per month by the end of this fiscal year, ending March 31, 2004. To achieve further production efficiency and quick response to market demands, Elpida will move its product development line, currently located at Elpida's Device Design Center in Sagamihara, Japan, to the Hiroshima site. This development line is capable of producing an additional 1000 wafers per month.
The total increased capacity at Elpida's Hiroshima fabrication plant will allow for the steady mass production of Elpida's high-end, high-density, 0.11 micron DRAM products, including its Single Data Rate (SDR) Synchronous DRAM (SDRAM), Double Data Rate (DDR) SDRAM, DDR2 SDRAM and Mobile RAM devices and modules. Elpida currently obtains additional DRAM production capacity from Hitachi, NEC, and Powerchip Semiconductor, and Elpida has recently announced foundry relationships with ProMOS and SMIC.
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 on December 20, 1999. Elpida has been in operation since April 2000.
* Based on the June 4, 2003 exchange rate of $1.00 (USD) equals 118.6 Yen (JPY).
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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.