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SMIC to produce Elpida´s DRAM chips using 0.10µm process

The management of Elpida, a joint venture of Hitachi and NEC, signed the agreement to outsource chips to Semiconductor Manufacturing International Corp (SMIC).

According to the agreement the Chinese company will be producing DRAM chips using 0.10µm process. Scheduled for launch to Q4 2004, the partnership is to last for 5 years. No monthly production volumes were disclosed. This is the second agreement of these companies. Currently SMIC produces chips for Elpida using the 0.13µm process.

According to Elpida, the new contract will allow 50% chip orders from SMIC and only the 50% production at own facilities. After the severance of Elpida and ProMOS, the partnership with SMIC will enable the chip manufacturer to increase production volumes and establish the more flexible shipments system. Drawing the bottom line, I should mention that Elpida plans to become the 3rd world DRAM maker with its own chip architectural development and outsourcing channgels.

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