05.31.2001
Winbond to ramp RDRAM production in 2H01

• Winbond (2344 'Hua Bang Dian') is in the final process of signing off the RDRAM licensing terms, and has planned to ramp production of 256Mb RDRAM during 2H01.

• Winbond obtained the Rambus license in 1997. It tried once previously to produce RDRAM in 2000, as it aggressively allocated 0.175um capacity. The company is even more determined this time around, owing to the substantial price premium over SDRAM and improved sales prospects for the Pentium 4 (P4), which is expected for 2H01. Intel (US) has announced that DDR chipsets will eventually be used for P4, but not until sometime next year. At present, RDRAM is the only choice for DRAM use in P4.

• VB Primasia Investment Opinion: The anticipated rivalry between RDRAM and DDR DRAM on existing platforms has yet to materialise. But, Winbond's window of opportunity is short, as Intel's DDR chipset will eventually come to the market by early 2001, which could erode the prospects for RDRAM to become a mainstream memory choice for the PC market.

• Nonetheless, as Winbond has also started initiatives in DDR DRAM production, the RDRAM development is not expected to impact adversely on the company's overall prospects. We maintain our Long Term Buy.

LindaLiu@Primasia.com +886-[0]2-2547-8867