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Elpida Memory increases capital spending
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Despite continuing financial losses due to the price declines of DRAM
during a sustained period of memory oversupply Elpida Memory is raising
its capital spending targets by approximately 20 percent to $1.095
billion for its financial year. Elpida is spending more at both its
joint venture 300mm fab, Rexchip in Taiwan as well as at its Hiroshima
300mm fab in Japan.
Bit growth is now expected to increase to as much as 90 percent for
its financial year, up from 70 percent bit growth previously projected
by the company. Productivity improvements above its initial
expectations were also cited for the growth in bit production.
Elpida
also said that it expects to begin 50nm DRAM production in the first
quarter of 2009 with its 65nm technology seeing major yield
improvements now that it is in volume production.
Elpida is also seeing strong market share growth as it ramps production at Rexchip.