August 20, 2007 – Taiwan’s memory chipmakers are in a heated race to upgrade to the next technology node, relying on international partners to gain access to leading-edge technology and boost capacity, according to a recent report by the Taiwan Economic News.

Winbond recently expanded its licensing partnership with Qimonda AG to include 75nm and 58nm DRAM trench technology. Winbond will make the devices at its 300mm facility in Taichung, with 75nm output slated to start by mid-2008 (initial capacity: 10k WPM), and it also will be able to use the process for its own specialty memories. Winbond’s 300mm facility currently makes 512Mb DDR2 DRAM chips for Qimonda, with about 2/3 of the site’s 24k WPM capacity using 90nm process technologies, and the firm wants to shift to 80nm process (which translates into 12%-15% lower production costs) for about 10k WPM output by year’s end. A $1.2B second-stage expansion at the factory will bring on additional capacity by mid-2008, the paper notes.

Powerchip, meanwhile, is obtaining 65nm process technology from Japanese partner Elpida Memory, to boost chip output by 15% vs. 70nm process and close the partners’ distance to rival Samsung, according to the paper. Powerchip plans to boost output capacity by 18% to 130,00 WPM by year’s end, plus an extra 30,000 WPM at the firms’ DRAM joint venture, Rexchip, which is now using 70nm processes and will pilot the 65nm process. Combined the trio (including the JV) expect a combined output of 250,000 WPM entering 2008, making them the DRAM industry’s top producer with >30% share.

Meanwhile, ProMOS, which is working with Hynix, says its yield rates for 70nm processes are exceeding 85%, and the company plans to shift all of its 65,000 WPM capacity to 70nm processes in September.

Taiwanese DRAM chipmakers and their foreign strategic partners

Chipmaker……….Foreign partner……….Technology/………………….Current 300mm
……………………………………………………..cooperation plan……………….. monthly capacity

PSC……………………….Elpida………………..Licensing 90nm,……………>100,000 wafers
…………………………………………………… co-developing sub-90nm

Nanya……………………Qimonda………………Licensing 90nm,……………None in-house
…………………………………………………… co-developing sub-90nm

Inotera……………………Qimonda………………Licensing 90nm,……………>70,000 wafers
…………………………………………………… co-developing sub-90nm

ProMos……………………Hynix…………………Licensing 90nm,……………>70,000 wafers
…………………………………………………… co-developing sub-90nm

Winbond………………….Qimonda………….Licensing 90nm,……….24,000 wafers
…………………………………………………… 75nm, and 58nm processes

Source: Taiwan Economic News, company data