Powerchip Semiconductor Corporation (PSC) has entered into a new agreement with Elpida Memory, under which PSC is allowed to source 240,000 wafer starts a month from their DRAM joint-venture Rexchip Electronics starting from April, according to industry sources. Also under the terms of the agreement, PSC will allocate 50% of its total 12-inch capacity to produce DRAM for Elpida's contract customers, said the sources.
PSC has resumed its right to receive a portion of Rexchip's 12-inch capacity based upon its holdings in the joint venture, the sources indicated. PSC stopped taking output from Rexchip from early 2009 due to its financial problems, and also sold some of its Rexchip shares used as collateral for debts owed to Elpida.
Elpida now owns a 64% stake in Rexchip, which currently processes 80,000 wafers per month on its 65nm node.
By obtaining output from Rexchip, PSC's total DRAM-chip shipments will accordingly grow by 20% in April, the sources indicated. Despite the shipment rise, PSC's planned capacity allocation for its foundry services may simultaneously reduce its supply to the spot market, the sources added.
PSC agreed it would use half of its 12-inch capacity to produce DRAM for Elpida over the next one year, compared to 20-30% it used to allocate, according to the sources.
PSC was quoted in previous reports saying 65nm is now its major production node for DRAM chips, and the company is shifting to 63nm prior to sub-50nm as the transition to the latter requires long lead equipment. PSC has budgeted a capex of NT$10-11 billion for 2010.
Spot market prices for DDR2 and DDR3 memory stayed high at US$2.98-3.02 during the morning session today (April 12), with the gap between eTT and branded parts almost nil. The price tracker expects spot prices for mainstream 1Gb chips to remain above contract prices throughout the second quarter.
At the contract market, quotes for DDR2 chips have risen 5-5.5% to average US$2.44 for the first half of April, pushing the price of 2GB DDR2 modules to US$42. Meanwhile, prices for DDR3 parts have edged up to US$2.69 for the same period, driving 2GB DDR3 modules to US$46.