Intel to invest $100 mill in Elpida Memory

Intel Corporation today announced they have signed an agreement for Intel to invest approximately US$100 million in Elpida Memory in return for non-voting stock.

Elpida Memory plans to use the proceeds from this proposed investment and other intended financing to significantly boost production at its 300-mm, sub-0.11 micron DRAM wafer fabrication plant in Hiroshima, Japan. Assuming timely satisfaction of all closing conditions, including satisfactory completion of due diligence, receipt of necessary internal and regulatory approvals and achievement of a substantial additional funding amount from other investors, the parties anticipate closing the Intel investment in coordination with the closing of the additional financing that Elpida intends to raise later this year.

In addition to the proposed investment, Elpida and Intel have signed a multi-year commercial agreement. As part of the agreement, the companies will share roadmaps in order to develop new DRAM architectures. DRAM is a key component in any computing system, and advancing DRAM technology helps to improve system performance by providing faster memory access to meet the increasing performance requirements of the newest generation architectures. Additional details were not disclosed.

“Elpida is committed to delivering advanced DRAM products for performance-driven markets,” said Yukio Sakamoto, president of Elpida Memory. “This proposed investment starts the process of raising the funding we need to increase our capacity to better support our customers’ requirements.”

“Continued investment in memory technology is strategically important for the industry,” said Gidu Shroff, Intel vice president and director of Materials. “Intel’s investment will help enable Elpida to continue to develop and produce leading-edge DRAM products. It is important that cost effective memory technology advances as quickly as possible to meet the ever increasing performance demands of Intel computing and communications solutions.”