Elpida to Take Over Taiwanese Chipmakers

Japan's key chipmaker Elpida Memory has agreed to take over Taiwan's three semiconductor firms. That reshapes the world's DRAM market into four major players: Samsung Electronics, Hynix, Elpida, and America's Micron.

The Nihon Keizai daily on Wednesday said Elpida, which ranks third globally with a 15.2 percent DRAM market share, agreed to merge Taiwan's Powerchip, ProMos, and Rexchip. Their merger will be completed within the year.

The resulting company will rank second in the industry with a 23.6 percent market share, beating Hynix's 19.1 percent but behind Samsung Electronics' 30.3 percent.

Meanwhile, America's Micron, which is ranked fourth with a 10.8 percent market share, is strengthening cooperation with Taiwan's Nanya Technology Corporation (4.4 percent), emerging as another key player.

Germany's Quimonda, the world's fifth largest player with 9.6 percent, has gone bankrupt on declining prices.

The industry expects that the reorganization will decrease supply and drive up prices.

englishnews@chosun.com / Feb. 12, 2009 11:34 KST