Should restructuring efforts go downhill, it could damage the memory market severely

Mar 14, 2012 14:16 GMT  ·  By

Elpida was, and arguably still is, a key part of the DRAM market, despite its serious struggles.

One would think that a bankrupt company wouldn't really have much influence on the market segment it inhabits, but that does not apply in this case.

In fact, there are concerns that if the restructuring efforts go badly, DRAM supply and prices will be negatively affected .

Rexchip, a foundry belonging to Elpida, has a maximum monthly capacity of 800,000 12-inch wafers, though the current level is 65,000.

DRAM competition is in danger if Elpida eventually exits the race altogether and has to shut it down.

At least it has the 25nm technology now, but even with that hanging over the heads of Samsung and SK-Hynix, its situation is slippery.

DRAM contract prices have already risen, by 5.7% this month alone. On average, a 4 GB DDR3 module sells for $18.50 / 14.15 Euro.