Elpida Memory has for the first time contracted its Taiwan-based joint venture to manufacture server-use DRAM memory, industry sources revealed. Rexchip Electronics will produce server DRAM chips for the Japan-based vendor using 38nm process at its 12-inch fab in central Taiwan, with volume production slated for the second half of 2011, according to the sources.
Foundry orders for Elpida's server DRAMs will occupy 30% of Rexchip's total capacity, which has reached about 85,000 12-inch wafers a month. Rexchip's major production node is 45nm process at present.
Fulfilling Elpida's server chip orders will also signal Rexchip's transition to 38nm process technology, the sources indicated. Rexchip is expected to start mass producing 2Gb and 4Gb DDR3 chips using the node in the second half of 2011, the sources said, adding that 4Gb parts will target server applications.
Elpida previously disclosed that Rexchip would start making mobile DRAM products for it as early as the third quarter of 2011, when its Hiroshima plant reaches full capacity.
Usage of mobile DRAM is soaring thanks to its adoption in smartphones and tablet PCs, while the market for DRAM used in servers, data centers and other large capacity memory systems is being driven by the rapid emergence of cloud computing.
Fellow company Micron Technology has already placed orders for server-use DRAMs with Inotera Memories, its joint venture in Taiwan, the sources indicated.
Inotera remarked at its last investors meeting that the company expects to ship a significant share of its products to the server market in 2011. Inotera is looking to expand sales generated from its non-PC use product lines and improve the company's overall profitability.