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[EETimes] Powerchip exits the DRAM business, sells to Elipda

post #1 of 9
Thread Starter 
Quote:
SAN JOSE, Calif. - Taiwan's Powerchip Technology Corp. is exiting the DRAM market, and is transferring the business over to Japan's Elpida Memory Inc.

The deal was somewhat expected. Under the terms, Elpida will purchase all DRAM products that Powerchip will manufacture, including the current portion which Powerchip has been selling as Powerchip branded products. Elpida will sell those products as Elpida's house brand products.

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post #2 of 9
Hm, I hope this won't mean any major confusion between RAM ICs for us...
post #3 of 9
Thread Starter 
Quote:
Originally Posted by xd_1771 View Post
Hm, I hope this won't mean any major confusion between RAM ICs for us...
It shouldn't be too bad as old Powerchip IC's will carry their same model number. They just may be labled Elipda XXXXX or Powerchip XXXX

Elipda's own chips that we're used to using (BBSE's Hypers', ect) wil remain the same.
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post #4 of 9
Futher consolidation.... how many DRAM companies are left now?
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post #5 of 9
Thread Starter 
Quote:
Originally Posted by DuckieHo View Post
Futher consolidation.... how many DRAM companies are left now?
2 Tai, 3 Jap, and 2 Korean to my memory.
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post #6 of 9
It won't be long until memory is just called "Elpida". lol
post #7 of 9
Quote:
Originally Posted by JohnDilinger View Post
It won't be long until memory is just called "Elpida". lol
It'll be more likely be called Samsung.

With Elpida purchasing Powerchip they've surpassed Hynix but they're still far behind Samsung. The DRAM industry isn't profitable and the Tawianese companies are really having a hard time. Elpida also has a large amount of debt. Hynix is still hasn't found a buyer from their creditors.

This is off-topic but South Korea has about 50% of the market in DRAM and NAND memory. It's kind of scary what would happen to prices if there was a war between North and South Korea. Toshiba's small power outage affected the market what would losing half the world's production do.
Edited by stimr2 - 1/31/11 at 7:01pm
    
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post #8 of 9
consolidation + less competition = higher overall prices.
post #9 of 9
Intel's posting record profits and insane cpu sales yet it takes a nuke of a major dram supplier end of '09 to raise ram prices several hundreds of percent by summer of '10. Which has fallen off to just massive margin compression through the end of the year. If all these computers are being built how come dram manufacturers aren't getting pressured for output and enjoying pricing power.
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