Industry sources in Taiwan speculate ProMOS Technologies will partner with Elpida Memory for a new manufacturing plant in Chongqing, Sichuan province (China). The speculation comes after a recent report cited Elpida president Yukio Sakamoto as saying the company expects to start construction on its first China-based factory as early as 2012.
Sakamoto was quoted as saying Elpida would decide on its China strategy by December. The company is looking to set up a manufacturing spot in China with a Taiwanese chipmaker, and seeks support from the China government, Sakamoto said in the report.
Elpida is working closely with Taiwan-based Powerchip Semiconductor Corporation (PSC), ProMOS and Winbond Electronics. Among the DRAM partners, only ProMOS has a wafer fab that is ready to go in china.
ProMOS is among the few Taiwan-based companies eligible by government standards to set up 8-inch fabs in China. The construction of its Chongqing fab was completed around the end of 2007, with volume production originally slated for the second quarter of 2008. However, the schedule has been put on hold as the DRAM market was stuck in a state of oversupply for almost three years.
The sources also speculate Elpida may seek an alternative approach on its China strategy. The Japan-based memory chip vendor could resume its plan to cooperate with China's Suzhou Venture Group (SVG) to jointly set up a 12-inch fab in Suzhou, Jiangsu province.
Elpida originally planned to establish a joint venture with China's SVG before the end of 2008. The JV would be located on a site area of 320,000 square meters, and produce DRAM at a 12-inch wafer fab in Suzhou.
In addition, Sakamoto was also quoted as saying Elpida is looking to add a new factory at subsidiary Rexchip Electronics. The plan should be drawn up within the next four months.
Rexchip, a DRAM-manufacturing joint venture between Elpida and PSC, had its first 12-inch fab kick off volume production in the third quarter of 2007. According to Rexchip's website, it plans to construct a total of four 12-inch fabs at the Central Taiwan Science Park (CTSP).