01.31.2001
Powerchip & Macronix benefit from Mitsubishi's new memory strategy

• Mitsubishi Electronics ('ME', JP) yesterday announced that its new memory business strategy is focused on producing Flash/SRAM multichip products for the handset market. The new strategy will see an expansion of current monthly production of 10m unit, to reach 25m by Mar. 2002. The company will also double SRAM shipment in 2001. Expansion will lead to an increased level of outsourcing. ME reportedly has contracted Powerchip (5346 'Li Jin'), in which it holds a 4% equity stake, to supply SRAM-in addition to the current Seiko Epson (JP) & Macronix (2337 'Wang Hong').

• Powerchip confirmed that new 0.18um process 2M, 4M and 8M SRAM orders from ME are to be finalized soon. Powerchip expects initial monthly volume of 3-4k wafers, a level that may be ramped up to 6k by Y/E 2001.

• Macronix currently supplies multichip to ME, produced using the 0.25um process, and is expected to become a key supplier for low-end handset products. ME will focus on producing 3G handsets under the 0.18um process.

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