Date: 22/11/2008

DRAM vendors Powerchip and Elpida engaged in close talks for a possible merger

With the industry slowdown imminent, the memory chipmakers Powerchip and Elpida are engaged in talks to strengthen their ties and may go for merger of businesses. Both already have a joint venture named Rexchip Electronics Corp. Elpida is eying to acquire few more DRAM companies in Taiwan. One such is ProMOS Technologies Inc.
The DRAM market is the most volatile market among the semiconductors; the impact of market downfall will be more on DRAM than any other device. Both companies being memory exclusives, merging looks to be the best option. According to the popular memory market website DRAMEXCHANGE.COM, the price of DRAM chips as fallen 53 percent to $0.81 since the beginning of 2008.