X-bit Labs reports Elpida is cutting its DRAM production to resolve the oversupply situation. The memory maker will cut monthly capacity at its 12-inch wafer fab in Hiroshima to 80,000 units from the current 120,000. The scaledown primarily targets production for commodity DRAM chips.
Elpida Memory has moved to scale down production at its DRAM fab in Hiroshima, Japan, as well as production at its Taiwan-based subsidiary Rexchip Electronics, according to industry sources. The global DRAM industry will accordingly see an about 10% reduction in supply, which will help improve the oversupply situation, said the sources.
In response, Elpida declined to comment citing the quiet period prior to merging with Micron Technology.
Rexchip responded saying its decision to cut back production is aimed at reducing cash outflows.