Elpida has been losing money for some time, but it finally seems like there is a solution in the near future. It is about to reach an agreement with Micron and Nanya regarding tits ReRAM technology where a very close cooperation will be started – but Elpida remains independent.
Elpida has presented its recovery plan to bring back the company to its feet, and as rumors have been suggesting Micron and Nanya have important parts to play. It is not a merger though. Elpida is rich in technology, but short on money. It will therefore use this to make other companies invest in Elpida.
Elpida, Micron and Nanya will not merge, but instead start up a very close cooperation. Micron is expected to make a major investment in Elpida, and become stock owners. Also Elpida is expected to invest in Micron and become stock owners there. The companies will sign a Memorandum of Understanding, where the agreement is detailed. When it comes to Nanya, Elpida is currently talking to mother company Formosa Plastics Group to come to a similar agreement.
The companies will share large portions of the research and development, but also cooperate with fabs and manufacturing. Elpida, Micron and Nanya will continue to be separate businesses, but work closely together where Elpida’s ReRAM will be the key to success. According to an Elpida spokesperson, this could be the only alliance capable of tackling Samsung, that is growing without resistance on the memory market.
The time frame is pretty narrow for Elpida, the company had to find a solution before the end of January. Due to problems in the negotiations between the parties it will take a bit longer. We can expect an official statement in the days to come, or sometime in February.
Source: BSN*
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