Kingston Reportedly to Outsource Part of Production

Kingston to Outsource Production to Gain Market Share

by Anton Shilov
12/01/2009 | 06:04 PM

Kingston Technology, the world’s largest supplier of memory modules and a leading maker of flash-based devices, said that it wants to boost its market share in the coming quarters. But instead of building new production facilities or expand the existing ones, the company intends to outsource some products to third parties.

 

David Sun, a co-founder of Kingston, told DigiTimes web-site that Kingston would increase its supply of DRAM modules and NAND flash devices through outsourced production to Taiwan-based Panram International and Orient Semiconductor Electronics (OSE), respectively. The company’s production capacities in China and Taiwan will remain on the existing level, which is logical due to turmoil economic condition and necessity to quickly respond to market challenges in the short-term.

For years, Kingston has relied mostly on its own production capacities. In order to introduce its own lineup of solid-state drives last year, the company teamed up with Intel Corp. to ensure the highest possible quality and basically resold its products under its own trademark. It remains to be seen whether the quality of memory module and flash-based devices made by Panram and OSE will be the same as that of products manufactured in-house.

At present it is estimated that Kingston consumes 80 – 100 million DRAM chips per month and is the top independent maker of memory modules.