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Renesas to invest over $307 million into Flash memory development

Renesas Technology informed about plans to invest $307.6 million into its Trenceti Technologies subsidiary to double the high-density Flash memory production by the Autumn 2004. Consider this on the background of mid-November agreement between Hitachi / Mitsubishi and Powerchip Semiconductor about the release of 1Gbit Assist Gate-AND chips.

According to Renesas trying to occupy a share of the Flash market ($2.25 billion; about 40% belongs to Toshiba, while Samsung expects about 66% by 2005)) with its AND Flash. Their 1GBit chips can store over 100 hi-res digital images (chips are naturally intended for digital still cameras and camera-equipped handsets) and provide higher write speed than NAND Flash.

After this investment plan is carried out, the monthly performance of Trecenti Technologies is to make 12,000 of 300mm wafers (vs. the current 9,000 wafers, of which 3,000 are AND Flash). Converting to chips Renesas´s new performance is 5 million of 1Gbit AG-AND units monthly in the next fiscal year (vs. the current 1.8 million chips).

Given the correct resource management, Renesas might control about 20% of the Flash market by 2005 with its 4Gbit AG-AND chips.

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