Elpida Memory has announced a series of measures to combat the yen's appreciation and falling DRAM prices, including plans to shift production to Taiwan, expand US dollar-based procurement, focus on more-profitable 4Gb chips and speed up technology transition to more cost-efficient processes.
In response to weak DRAM prices, Elpida's mainstream DRAM chip density will be shifted from the current 2Gb to large-density 4Gb to mitigate the impact. The Japan-based vendor also plans to reduce its manufacturing costs by accelerating technology transition to 30nm and below processes at its Hiroshima plant.
To counter the strong yen, Elpida will expand its US dollar-based purchases to help minimize forex risks, the company revealed. It is also considering moving some of the production at its Hiroshima plant to Taiwan-based subsidiary Rexchip Electronics. Elpida did not elaborate on details of the capacity transfer, saying that the possibility is currently being evaluated.
Elpida holds an about 70% stake in Rexchip. The subsidiary currently runs a 12-inch fab at the Central Taiwan Science Park (CTSP) with a monthly capacity of nearly 90,000 wafers.
Elpida also said it is looking to make more aggressive use of its IP rights with an aim to grow revenues generated from its patent license deals.
Elpida recently filed a lawsuit against Nanya Technology in the US, claiming that Nanya and its US subsidiary have infringed on its DRAM patents and demanding compensation from the Taiwan-based company.