Elpida Memory and ProMOS Technologies  today announced that they have signed a Memorandum of Understanding (MOU) regarding the technology transfer and joint development of next-generation Dynamic Random Access Memory (DRAM) processes.

The cooperation is intended for the design of all new processes starting with 0.10 micron and lower, including all new DRAM products. The agreement will also include arrangements for product purchase and supply, as well as the collaboration on new product development to better address market demand for new types of DRAM. Details of the agreement are currently under discussion by the parties and are expected to be finalised by the third quarter 2003.

In early March 2003 Elpida signed partner agreement with Powerchip Semiconductor Corporation (PCS) (see this news-story).

Under terms of the agreement the Japanese DRAM vendor is able to buy 30% to 50% of PSC’s output and will license 0.10 and 0.11 micron process technology to the Taiwanese memory maker. In addition, 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.

With PSC’s, ProMOS’ and Japanese memory makers’ output Elpida’s positions on the market should be strong and its market share should grow significantly. In 2002 Elpida was the number six memory vendor with 4% of the market. Powerchip’s share was about 1.70% to 2.20% and this year the company hopes to double this figure. Mitsubishi’s and Toshiba’s shares were 2.40% and 1.90% according to iSuppli respectively.  ProMOS’ share is unknown since it mostly sold its memory via Infineon or Mosel Vitelic, however, we can estimate that it sold to the companies from 3.80% to 5.0% of the world’s memory output. In case Elpida and its new partners keep the market shares on the present level or even increase them somehow, Elpida’s intention to sell 20% of the world’s DRAM chips by the year 2005 can be achieved even earlier.

There are a lot of challenges behind Elpida, however, up to now the company executed itself pretty well.