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DRAM crisis breeds new ties: Qimonda responded to Nanya’s “betrayal” by alliance with Elpida

Memory manufacturers Qimonda and Elpida intend to master the production of dynamic random access memory (DRAM) chips at 40 nm or less. According to the companies, this will increase their chances of confronting the industry leader, the South Korean company Samsung.

In a joint statement, the companies expressed confidence that the exchange of technology will accelerate the transition to the release of memory at finer standards. In particular, Qimonda will provide its Buried Wordline technology, and Elpida will provide advanced stack capacitor technology. Partners plan to start production of 40nm memory in 2021, and move to 30nm standards in the future.

As you know, the DRAM market is going through a difficult period. Due to overproduction, prices fell by about 90% over the past year. Manufacturers overestimated the demand for personal computers, the main consumer of DRAM chips, and ramped up production in hopes of increasing their market share, exacerbating the situation.

Qimonda has suffered losses for several quarters, and intends to cut a tenth of its staff. In turn, Elpida warned that its operating losses are double the projected.

Difficult situation forces manufacturers to seek new allies in the struggle for survival. As a reminder, Qimonda previously worked closely with Taiwanese manufacturer Nanya, which this month signed a joint venture agreement with Qimonda’s competitor, the American company Micron.

Source: Reuters

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