While Japan-based DRAM maker Elpida Memory has filed for bankruptcy protection and will start its restructuring process, Elpida's disposal of the DRAM foundry capacity belonging to its Taiwan-based subsidiary Rexchip Electronics will influence international supply and in turn prices, according to industry sources.

As Elpida has finished development of 25nm technology to make DRAM, it is still technologically competitive with Samsung Electronics and SK-Hynix (renamed from Hynix Semiconductor), the sources indicated.

Rexchip has existing monthly foundry capacity of 800,000 12-inch wafers and uses 65,000 wafers currently, the sources pointed out.

In related news, DRAM contract prices for March have risen by 5.7% on average, with prices for 4GB DRAM modules increasing to a maximum of US$18.75 and an average of US$18.50, the sources indicated. PC ODM/OEMs are worried about tight supply of DRAM if Elpida really goes broke but are unwilling to accept high quotes due to slow demand for PCs, the sources said.