Asian media sources report that Elpida and Powerchip Semiconductor Corporation (PCS) have signed partnership agreement. Under terms of the agreement the Japanese DRAM vendor will be able to buy up to 50% of PSC’s output and will license 0.10 and 0.11 micron process technology to the Taiwanese memory maker.

Powerchip Semiconductor currently produces 12 thousands of 300mm wafers per month and beginning from April this year 30% to 50% of the production will be bought by Tokyo, Japan-based Elpida. The latter will license its 0.11 and 0.10 manufacturing technology for PSC’s capacity. It also worth to mention that in early October 2002 Mitsubishi Electric, Powerchip Semiconductor Corporation (PSC) and Elpida Memory announced the plan to form a strategic alliance in DRAM operations in order to help each other in developing and implementing advanced manufacturing technologies and consolidate sales operations (see this news-story), so, now we see an expansion of the agreement, which should strengthen Elpida’s positions in the alliance.

More details on the matter will be available tomorrow, when both companies issue the official announcement.

Elpida plans to occupy 20% of DRAM market share by 2005 and now seeks for manufacturing partners. Currently the Japanese DRAM company has the same technology-for-capacity agreement with SMIC and is in talks with ProMOS.