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Elpida outlines capacity expansions for 2007 |
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Jan 25, 2007 at 02:21 PM |
 Elpida Memory plans to increase capital spending over the next 4 months in an effort to increase production of DDR DRAM due to expected demand in the second half of the year. The dedicated DRAM memory manufacturer had previously outlined CapEx spending for FY2006 to be ¥120 billion, down slightly from FY2005 of ¥124.5 billion. However, CapEx is now expected to reach ¥145 billion in FY2006, a 20 percent increase over the previous forecast.
Spending will be concentrated on equipping Area 3 of its E300 300mm fab due to the completion of Area 3's cleanroom in March 2007, earlier than expected. Previously, spending was planned to begin on equipment in the next financial year beginning in April.
Elpida had previously concentrated capital spending on Area 2 of E300 for the ramp of 70nm DRAM in the last quarter. The capacity expansion will see E300 reach 88,000wspm by September this year, the company said in its quarterly financial statements. Capacity at E300 is put at 100,000wspm.
Elpida also announced the name of its Joint Venture DRAM manufacturing operations with Taiwan's Powerchip Semiconductor Corporation (PSC). The new 50/50 operation will be called Rexchip Electronics Corporation, with Stephen C.K. Chen, currently Senior Vice President of PSC, becoming President of the new JV business.
Rexchip plans first phase tool install at a soon to be completed 300mm fab (R1) in the Central Taiwan Science Park, Taiwan, in the second quarter of this year with volume production occurring in the third quarter. The initial capacity ramp plan is to 30,000wspm within 12 months and will start producing at the 70nm node. Total capacity of R1 is 60,000wspm. Elpida expects to invest ¥80 billion in R1 through FY2007 out of a total expected investment with PSC of ¥230 billion in FY2007. Plans are in place to build 4 300mm fabs on the site, each with a capacity of 60,000wspm.
However, the plans for the ‘Houli site' are more aggressive (see chart below) than was previously planned between the JV partners over the first 15-month ramp phase.
Elpida joins a growing list of DRAM manufacturers that are increasing capital spending and production levels through 2007 and beyond. This is primarily due to the expected adoption rates and increased demand for memory in PCs due the roll-out of Microsoft's new operating system.
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