Winbond move to DRAM not surprise

A Taiwanese components company is to start manufacturing DRAM at a time when existing suppliers are feeling memory pain. Winbond started producing DRAM last July, according to reports, but will step up production to a point where by the year 2000 it will have two fabs.

The company has struck a deal with Toshiba, where Winbond makes the memory using the Japanese firm's technology. Winbond, in return, gives Toshiba two thirds of memory produced.

The decision by Winbond to move into memory manufacturing is not as strange as it at first seems. Winbond has put back its plans by six months. That decision is in line with a recent report from Dataquest which predicted that memory prices will begin to stabilise next year and other analysts predict that prices will begin to rise again. ®