Taiwan's Four DRAM Powerhouses Gear Up Flash Upgrades
September 27, 2000 (TAIPEI) -- Taiwan's four largest dynamic random access memory makers reportedly are pushing ahead with technology transfer negotiations with Japanese companies and IC designers.
The four are Nanya Technology Corp., Winbond Electronics Corp., Powerchip Semiconductor Corp., and Taiwan microchip maker Mosel Vitelic Inc.
The four microchip powerhouses intend to upgrade their flash memory production by acquiring 0.2-micron or 0.15-micron manufacturing processes in order to diversify their business and consolidate their competitive advantage.
Japan's Toshiba Corp. and Mitsubishi Electric Corp. are the preferred sources for these processes. Earlier this year the four companies acquired the skills to produce flash memory, particularly data flash, by reinvesting in IC design companies or acquiring the necessary expertise from Japanese companies, and are now once more in the market for state-of-the-art technology from Japan.
According to studies conducted by IC Insights Inc., Semico Research Corp., and other, the worldwide output value of flash memory is expected to reach US$8.95 billion this year, up a sharp 96.2 percent year-on-year. The significant growth in the demand for flash memory has encouraged leading global chipmakers to cut their DRAM capacity in favor of mass-producing flash memory. Micron Technology Inc. has decided to raise its flash memory production to 20 percent in the coming year.
The prices of 16Mb and 8Mb (TSOP) flash memory chips have also stayed agreeably stable at US$26 and US$12 per unit, respectively, despite the tumble in the 64Mb DRAM (8M x 8) spot price. The high unit price has attracted a large number of local DRAM manufacturers to move into the flash markets, shrugging off the slowdown in global handset demand.
Winbond presently uses the 0.5-micron manufacturing process to produce 4Mb and 8Mb flash memories, generating sales of around US$200 million annually. Winbond and Macronix International Corp. are strongly predicted to rival the world's Top 10 flash producers this year. Winbond says it might step into the production of 32Mb or higher flash memories just for cellular phones in tandem with Toshiba.
Powerchip, another active participant in the flash memory market, intends to allot part of its new 0.15-micron manufacturing production to Mitsubishi in 2001, in order to manufacture 32Mb or higher handset flash memories for the Japanese company on a contract basis.
Related story: Intense Competition Expected in Flash Memory IC Market
(Commercial Times, Taiwan) |
