Last week Elpida revealed plans to merge with Taiwanese DRAM makers, but the company has scrapped these plans following opposition from the target companies. Rather than integration, Elpida will now focus on outsourcing production to these firms.
“Most Taiwan DRAM companies’ presidents don’t want integration,” Elpida Chief Executive Officer Yukio Sakamoto said in reference to producers of dynamic random access memory chips, during an interview in Taipei today. “We’re better having many product lines with Taiwan DRAM companies.”
The comments reverse a plan announced last year to buy stakes in Taiwanese chipmakers to consolidate and counter competition from market leader Samsung Electronics Co. Chipmakers face mounting pressure to unite to keep up with the estimated $10 billion the South Korean company invests annually to widen its lead in chip output.