Winbond Electronics Corporation Announces Update On Corporate DRAM Strategy And Discloses New Plans for 12-Inch Fab

(Taipei News) Winbond Electronics Corporation today announced an update on its corporate DRAM business strategy and disclosed new construction plans for its new 12-Inch fab. Pursuant to the Company's strategic DRAM business strategy, the Company's DRAM partner, Toshiba Corporation Japan, is in the process of making modifications to its business strategy and will form a memory product joint plan with a third global chip company. By joining forces and combining resources and capabilities, each partner seeks to gain additional market share and enhance its competitive position in the worldwide semiconductor industry. 

Toshiba has been a key partner in Winbond's DRAM business and both companies have enjoyed a successful collaborative relationship. Winbond heartily endorses this new strategic direction and as such, has agreed to extend the Winbond-Toshiba partnership to include a third partner. This move should enhance and strengthen Winbond's worldwide competitiveness in DRAM technology.

Presently, it is Winbond understanding that the processes and technology between Toshiba and its partner are not wholly compatible. Therefore, all parties are in the process of negotiating a new collaboration model and process technology strategy. As a result, Winbond is making some alterations to the original co-development plan and, in the spirit of fully utilizing its corporate resources, has recalled its technical team from Yokohama, Japan. The Winbond DRAM team, with its depth and breath of experience, will focus its extensive expertise on improving Winbond's process technology development for 0.13-micron DRAM and Flash memories. 

Winbond also announced that plans for the Company's new state-of-the-art 12-inch Fab will proceed. Plans for the new fab had been temporarily put on hold earlier in the year due to environmental concerns for the fab's previously chosen site. The lease on the new 12-inch fab, which will be located in Hsinchu Science-based Industrial Park, is scheduled to begin in the first half of 2002. Details, such as the fab's construction schedule, however, are subject to many of the details currently being re-negotiated with Winbond's strategic partners. 

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