Japanese memory chip maker Elpida Memory Inc. will join forces with three Taiwanese counterparts to produce small dynamic random access memory (DRAM) chips to take on competition from South Korea, according to the report.
The reported that Elpida will announce in July at the earliest that it will work with Taiwan's ProMOS Technologies Inc., Rexchip Electronics Corp. and Powerchip Technology Corp. in small-sized DRAM production cooperation.
According to the report, the development is expected to reduce production costs, as the cutting edge technology will boost the volume of DRAM production by 25 percent on every single wafer.
The report said Elpida will provide the technology to the three Taiwanese firms, while all four will use the existing facilities of the Taiwanese partners to churn out small DRAM chips to be used in computers or servers.
The report said the four companies will not need to spend more to build new production capacity, although small improvements in the existing 65 nanometer production process of the three Taiwan firms will be needed.
The report added that the cooperation is expected to boost competitiveness through cost savings and help the memory chip makers in Japan and Taiwan compete with Samsung Electronics and Hynix Semiconductor of South Korea.
Under the collaboration, an Elpida plant in Japan's Hiroshima will entrust the three Taiwanese companies to produce 300,000 12-inch wafers a month, about 60 percent of which will be used in small DRAM manufacturing, the report said.
Last month, Elpida signed an agreement with Taiwan's United Microelectronics Corp. and Powertech Technology Inc. to jointly develop integrated circuit packaging technology.
The three will develop 3D IC integration technology that will stack chips vertically with "through silicon via" technology and are scheduled to present the first results of the deal to the market in 2012.