Winbond Electronics has recently begun making GDDR chips for Elpida Memory with a production capacity of 5,000 wafer starts a month, according to industry sources. However, the monthly output only meets half of Elpida's demand, as Winbond also looks to allot more capacity to NOR flash parts which carry higher gross margins.
Elpida has demanded a monthly output of at least 10,000 wafer starts for GDDR memory from Winbond, in a move to quickly ramp up its graphics DRAM business, the sources indicated. The foundry partner is unable to fulfill the need, as growing NOR flash prices have encouraged it to scale up related production, the sources said.
Winbond is expected to ramp up its monthly output for NOR flash to 10,000 wafer starts in the second half of 2010 from 7,000 at present, according to the sources. NOR flash supply has been tight due to escalating demand from the PC and consumer electronics sectors, propping up prices for the memory.
Winbond has reiterated several times its plans to exit the commodity DRAM business, and focus on specialty DRAM, mobile RAM, NOR flash and GDDR product lines.
Under Elpida's foundry deal with Winbond, Elpida will start purchasing Winbond's output of GDDR3 and GDDR5 DRAM products in the first half of 2010. Elpida has taken over Qimonda's technology licenses and design assets related to GDDR chips as a newcomer to the GDDR market where Samsung Electronics and Hynix Semiconductor play major roles.