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Strong Yen, weak DRAM may force Elpida off-shore

In a worldwide DRAM market that fell 24% to $8bn in Q2, the No.3 player, Elpida, is looking to escape the strong yen by manufacturing in Taiwan.

Elpida has a 64.7% stake in Taiwan-based DRAM-maker Rexchip which is an Elpida-Powerchip joint venture.

Elpida is saying that Rexchip could take on more of its DRAM manufacturing, reducing its output from its Hiroshima fab.

In July, Elpida raised over $900m to fund process upgrades from 40nm to 30nm and a switch of focus from 2Gbit to 4Gbit DRAM.

Elpida posted a $50m loss for Q2.


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