Intel invests $100 million in DRAM manufacturer

4 June 2003

Elpida Memory, a manufacturer of Dynamic Random Access Memory (DRAM), and Intel Corporation today announced they have signed an agreement for Intel to invest approximately $100 million in Elpida in return for non-voting stock.

Elpida Memory plans to use the proceeds from this proposed investment and other intended financing to significantly boost production at its 300-mm, sub-0.11 micron DRAM wafer fabrication plant in Hiroshima, Japan.

In addition to the proposed investment, Elpida and Intel have signed a multi-year commercial agreement. As part of the agreement, the companies will share roadmaps in order to develop new DRAM architectures.

'Elpida is committed to delivering advanced DRAM products for performance-driven markets,' said Yukio Sakamoto, president of Elpida Memory. 'This proposed investment starts the process of raising the funding we need to increase our capacity to better support our customers' requirements.'

'Continued investment in memory technology is strategically important for the industry,' said Gidu Shroff, Intel vice president and director of Materials. 'Intel's investment will help enable Elpida to continue to develop and produce leading-edge DRAM products. It is important that cost effective memory technology advances as quickly as possible to meet the ever increasing performance demands of Intel computing and communications solutions.'