14 DAY TRIAL // Elpida may have gone into bankruptcy, but its subsidiary maker of DRAM needn't fall with it, especially since it gets funds from other companies too, like Powertech Technology.
Speaking of Powertech, the company has decided that it is no longer in its best interest to hold onto its stake in the manufacturer.
As such, it has started the process of selling all its 9.32% to Kingston Technology, for the sum of NT$3.850 billion.
That sum translates into $131 million and 98 Euro, or so exchange rates say.
Kingston has chosen to make this purchase because it wants Rexchip's 25nm DRAM technology, the one that Elpida originally came up with.
The latter may be in dangerous waters, as mentioned above, but that doesn't mean that its inventions are underwhelming.
In fact, the 25nm DRAM manufacturing is something it got very good results in, so it makes perfect sense for Kingston to gun for it. As such, the memory maker will rely on 25nm for the long term.
Of course, it will have to provide Rexchip with funds and such, but it should manage it just fine.
After all, despite all the problems with DRAM sales, Kingston's shipments for 2011 actually went up a great deal last year (20%), so finances shouldn't be a problem.
Meanwhile, PTI found it convenient to sell its stake because of probable drops in stock price down the line, and the overdue Payments on Rexchip's part.
We still think it is a bit strange that the transaction is happening though. After all, Powertech bought the stake no earlier than last month (February 2012).
Then again, that only happened because of Rexchip's debts of NT$5.0 billion ($165 million / 123.59 million Euro).
The transaction was approved on March 26 by both parties and shouldn't take long to sort out. After that, Kingston will no doubt use 25nm chips in its HyperX memory kits and modules.