Taiwan-based Winbond Electronics said on Tuesday that its board of directors approved plans to acquire a proposal to enter product transfer and technology licensing agreement with Qimonda AG for graphics memory business that uses graphic double data rate (GDDR) specification.

Dynamic random access memory (DRAM) designed for usage with graphics processors is used both to make graphics cards as well as inside video game consoles. However, there are only three manufacturers who produce GDDR memory: Hynix Semiconductor, Samsung Electronics and Qimonda AG, which is bankrupt and will not be able to make memory any longer. Therefore, entering GDDR business seems to be very logical for many companies.

Winbond’s plan is to acquire Qimonda’s GDDR-related product design and technology that will enable Winbond to enter graphics DRAM application market. Successful execution of this plan will mean expansion of Winbond’s core business while reducing dependence on commodity DRAM in Winbond wafer fab.

There is rather high demand towards high-performance memory, but only a handful of companies are able to produce GDDR in volume. For example, even such companies like Elpida or Micron Technology currently do not offer leading-edge GDDR products.

Tags: Winbond, GDDR, Qimonda