Elpida to Aggressively Adopt New Process Technologies, Move Production to Taiwan

Elpida Unveils Radical Action Plans in Response to Declining DRAM Prices and Strong Yen

by Anton Shilov
09/14/2011 | 09:23 PM

Elpida Memory, one of the world's third largest dynamic random access memory (DRAM) maker, has announced a plan of action in response to historically high yen against the dollar and DRAM market deterioration.

 

Since the beginning of May 2010, when the foreign exchange (forex) rate was ¥95 to $1, the Japanese yen has steadily appreciated. In early September last year the yen was at ¥85 to $1, but in August this year it temporarily reached ¥75 to $1, a record level of currency strength. More recently the yen has been in the neighborhood of ¥77to $1. In the face of current expectations that the yen will remain strong for the immediate future, DRAM product prices have fallen by about one-third compared to a year earlier, resulting in an extremely harsh business environment for Elpida.

To address this rapidly deteriorating market situation, the company will make a determined effort to strengthen its management response: