Elpida Memory and Powerchip Semiconductor Corporation (PSC) today announced the official signing of the sales and purchasing contract agreements solidifying their strategic alliance. Under the terms of the agreement, Elpida will buy up to 50% of PSC’s output, but will provide the Taiwanese memory maker process technologies.

Beginning in March 2003, Elpida will buy DRAM products from PSC that are produced using the Mitsubishi-developed 0.15/0.13 micron process, and later, PSC will produce DRAM products using Elpida's own advanced 0.10 micron and 90nm technology process. PSC is also entitled to develop, produce and sell its own products manufactured with Elpida's newest process technologies. As part of the agreement, PSC will provide up to 50% of its available 12-inch DRAM foundry capacity to Elpida.

The total capacity of PSC's 300mm fab is currently 12 000 wafers per month, utilizing 0.15 micron process for mass production. PSC expects to implement 0.13 micron process technology during the second half of 2003. According to the agreement, PSC will later implement Elpida's 0.10 micron and 90nm process in its 300mm fab. Both parties will begin a technical transfer training program in October 2003 in which PSC will send engineers to Japan for training, and Elpida will have its supporting team stationed at PSC. PSC plans to start the initial production of 0.10 micron processing at the beginning of 2004, with mass production scheduled for mid-2004. The 90nm micron technology process is scheduled to commence in early 2005.

The strategic alliance will allow Elpida to expand manufacturing capacities without huge investments, while PSC will receive state-of-the-art manufacturing technologies.