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Elpida calms aggressive fab ramp |
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Apr 26, 2006 at 02:52 PM |
 Elpida Memory, the owner and operator of the largest 300mm fab (E300), with a potential capacity of 100,000wspm when fully utilised is pulling back on capital spending in its 2006 financial year. The production ramp at E300 will be demand driven rather than strategic, according to the company in its documents issued to cover its financial year-end.
In 2005, Elpida's capital expenditure came in at 189.4 billion Yen as it aggressively ramped E300 to around 54,000wspm. However the Japanese DRAM manufacturer now plans to spend only 100 billion Yen on CapEx in its 2006 financial year. CapEx for the 1Q06 was 29.8 billion Yen.
The company now expects to ramp the fab that now includes a massive extension ‘E300 Area2' to 60,000wspm over the next 12 months. However, should market demand dictate, the company would increase production to 67,000wspm or a 13,000wspm increase in the same period. In that time, Elpida expects 85 percent of production will on its 90nm DRAM process and 10 percent migrated to the 80/70nm node. Elpida also expects to speed up the development of its 70nm processes to remain competitive with Samsung and Infineon's process node roadmaps.
In its PC DRAM business, Elpida plans to continue to outsource production to SMIC and PSC its foundry partners. The company expects to increase the percentage of total wafer output via foundries to around 50 percent of production, though no timetable was provided.
In the last year since ramping E300 aggressively, Elpida has grown its DRAM market share from 4 percent to around 8 percent, according to the company. Elpida's long term goal remains the same in becoming the single largest DRAM manufacturer.
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