Elpida to scale back DRAM production

Sources cite sluggish demand and low prices

The Japanese memory manufacturer Elpida (TYO:6665) is reportedly cutting its DDR output by around 20%. This is according to remarks by DK Tsai, chairman for memory-IC packaging and testing firm Powertech Technology. The company expects a lower turnover based mainly on a smaller output from Elpida.

Also, Elpida subsidiary in Taiwan Rexchip, is currently building up a wafer bank. A bank of finished wafers that just need to be cut up and packaged in order to produced finished chips.

Recently the contract price for modules for July delivery fell to a low of $14.50 for a 2GB DDR3 module.  According to information obtained by SemiAccurate there are currently no plans for reducing output from Elpida’s largest competitors in the market.

The lower prices are cause by an oversupply due to very sluggish tablet sales in Asia, not least in China, that has been seen as a major tablet market.S|A

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