Elpida shifts focus from dram to smartphone chips
1 min read
In a bid to move away from dram production to more profitable smartphone chips, Elpida Memory has announced plans to raise nearly 80billion yen ($992million) through new shares and convertible bonds.
According to Reuters, the world's number three dram manufacturer will invest the cash in cutting edge technology as it chases Samsung and Hynix Semiconductor into more profitable chips and defends market share against US rival Micron Technology.
In a filing to the Financial Services Agency, Elpida said it will issue 52.2bn yen in new shares and 27.5bn yen in convertible bonds. The company, Japan's sole maker of dynamic random access memory chips, plans to use the money to invest in the production and development of memory chips for smartphones, tablet pcs and other devices.
Spending plans after the fundraising include 25bn yen on a new factory in Hiroshima by 2013, while part of the money will be used to repay existing debt.
In Q1 2011, revenue from the global dram industry slumped to $8.2bn from $10.8bn in Q2 2010 as sales of pcs tumbled, according to market analyst iSuppli.
