Elpida Memory, Inc. and Powerchip Technology Corporation today announced that they have reached a non-binding understanding that 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. Further consultations between both companies will be held to reach an early final agreement.
Elpida currently has a foundry agreement with Powerchip for PC DRAMs and purchases half of what Powerchip manufactures at their fabs in Hsinchu, Taiwan. Powerchip currently has 80,000 wafers per month capacity for commodity DRAM production and licenses from Elpida the right to distribute the other half of the products as their own branded products. Powerchip also has a right to purchase approximately 30,000 DRAM wafers fabricated at Rexchip Electronics Corporation, a joint venture between the two companies, and sell those DRAMs to their customers as their own branded products.
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