Intel Offers Toshiba Funds To Make Direct Rambus DRAMs
Tuesday, February 2, 1999
TOKYO (Nikkei)--Intel Corp. of the U.S. has offered to provide Toshiba Corp. (6502) with funds to increase production of Direct Rambus DRAM (dynamic random-access memory) chips, it was learned Tuesday.
Full-scale mass production of the new DRAM chip is being delayed because many major manufacturers have reduced capital investment.
Intel is already providing funds to Samsung Electronics Co. of South Korea and Micron Technology Inc. of the U.S. mainly through the purchase of convertible bonds issued by the firms.
Toshiba will decide whether to accept the offer after finalizing details of its investment plan for the chips, according to company sources. Intel has not disclosed the amount of funds it is willing to provide, but it has supplied 500 million dollars to Micron and 100 million dollars to Samsung.
Direct Rambus DRAM chips, which have a data-transmission capacity twice that of current mainstay synchronous DRAM chips, will be introduced in personal computers this year. The chips enable PC users to take full advantage of new high-speed microprocessor units, such as the ones Intel makes.
Production of Direct Rambus DRAM chips, however, requires significant capital investment because inspection lines and other new facilities need to be set up, so Intel has decided to support chip makers suffering from sluggish earnings.
Toshiba has taken the lead in producing the chips in Japan.
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