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Infineon confirms Nanya gig

Foundry JV

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Infineon and Nanya today firmed the details of their proposed foundry JV.

The two DRAM makers will work together on R&D for teeny-weeny die 0.09micron and 0.07micron manufacture for 300mm wafers. At the same time the company is setting up a 50:50 JV for producing DRAM chips and for building a 0.09micron 300mm fab in Taiwan, Nanya's home country.

The first chips will roll off this line at the end of 2003, according to the companies, which forecast a production run rate of 20K wafer start a month, by the second half of 2004.

Currently, the deal is at non-binding memorandum of understanding (MOU) stage, so it could still founder. Also, the deal needs the nod from Taiwanese antitrust authorities.

Nanya has recently won preferred supplier status for Dell, which will ensure massive volumes, if at keen prices. Yesterday, Michael Dell accused the DRAM industry of acting almost as a cartel. Considering that DRAM makers have collectively lost billions of dollars in the last couple of years, and have had just one good quarter, we think that Dell's charge does not stick. Yet. ®

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