Path: EDN Asia >> News Centre >> Consumer Electronics >> Micron’s Elpida buy to impact DRAM market
Consumer Electronics Share print

Micron’s Elpida buy to impact DRAM market

14 May 2012

Share this page with your friends

Elpida has announced Micron as the winner of the second round of bidding for the right to exclusively negotiate to buy the Japanese DRAM firm. This is according to DRAMeXchange, a research arm of TrendForce Corp. Micron may offer up to TWD$110 billion for Elpida, which is seen to shake the entire DRAM industry supply chain, noted the market research firm.

Looking at 1Q12 revenue market share figures, Micron and Elpida came in third and fourth with 11.6 percent and 12.4 percent of the market, respectively, still a good distance behind second-place maker SK Hynix, who came in with 23.9 percent market share. After Micron and Elpida have integrated, their combined market share will bring the Micron team�s market share (Micron, Inotera, Elpida and Rexchip) to nearly 24 percent, surpassing SK Hynix to become second only to Samsung. As TrendForce has previously stated, the DRAM industry is heading towards becoming an oligopolistic market�the emergence of three major DRAM players will help DRAM chip price gradually stabilize, bidding farewell to the price-slashing market competition of the past, DRAMeXchange indicated.

After Micron acquires Elpida, the Micron alliance will combine the DRAM capacities of major Taiwan, U.S. and Japanese makers. The new team will be able to go up against the Korean heavyweights in terms of both commodity and mobile DRAM.

Looking at technology migration, Elpida is not far behind the Korean makers in either yield rate or migration speed for both commodity and mobile DRAM. The Japanese supplier�s 30nm process yield rate is nearly mature, while the 25nm process is in the testing phase at Elpida�s Hiroshima fab. Elpida subsidiary Rexchip is expected to begin testing on the 25nm process in 3Q, and its mass production schedule is the same as its parent company�s. Elpida�s performance in the mobile DRAM sector is impressive as well, stated TrendForce, which added that the maker�s mobile DRAM revenue market share reached 8.8 percent in 1Q12. Cooperation with Micron�s flash memory team would turn Elpida into an even more formidable opponent in the mobile DRAM sector.

Elpida to Benefit Taiwan DRAM Makers
Looking at Micron, the maker has always had close ties with first-tier PC OEMs in terms of commodity and server DRAM�its NAND flash products are internationally competitive. Micron and Elpida�s integration will be beneficial in terms of both product diversification and capacity increase. The adjustments will help improve the oversupply situation that has long plagued the DRAM industry. Together, Elpida�s mobile DRAM products and Micron�s NAND flash chips can be used to produce multi-chip packaging (MCP) products, which will help increase entry to mid-level smartphone market penetration rate, thereby significantly improving cost structure and profitability for the makers.

As for Taiwan DRAM manufacturers, Micron�s acquisition of Elpida�s commodity and mobile DRAM technology will be a boon to Taiwanese memory makers. If Nanya and Inotera have access to Elpida�s technology, the makers will be able to speed up migration to the 25nm process. With the Taiwan manufacturers� strong manufacturing capabilities, they will be able to quickly begin mass production and lower cost structure. If the tri-national alliance is successful, not only will the makers have a chance to take second place in the global DRAM revenue ranking, but it is estimated that their total capacity will exceed 400K wafer starts per month, or 40 percent of DRAM industry capacity. The team will become the third DRAM heavyweight, and the DRAM industry will be dominated by three major players.




Want to more of this to be delivered to you for FREE?

Subscribe to EDN Asia alerts and receive the latest design ideas and product news in your inbox.

Got to make sure you're not a robot. Please enter the code displayed on the right.

Time to activate your subscription - it's easy!

We have sent an activate request to your registerd e-email. Simply click on the link to activate your subscription.

We're doing this to protect your privacy and ensure you successfully receive your e-mail alerts.


Add New Comment
Visitor (To avoid code verification, simply login or register with us. It is fast and free!)
*Verify code:
Tech Impact

Regional Roundup
Control this smart glass with the blink of an eye
K-Glass 2 detects users' eye movements to point the cursor to recognise computer icons or objects in the Internet, and uses winks for commands. The researchers call this interface the "i-Mouse."

GlobalFoundries extends grants to Singapore students
ARM, Tencent Games team up to improve mobile gaming


News | Products | Design Features | Regional Roundup | Tech Impact