Mitsubishi plans to scale back its DRAM business

Mitsubishi Electric Corp. is looking for ways to scale back its DRAM (dynamic RAM) business and is considering an alliance with other companies, both in Japan and overseas, the company said Wednesday.

The announcement comes as Mitsubishi Electric looks to shift the focus of its semiconductor business from DRAM to system LSI (large scale integration) chips, said a company spokesman, who declined to give his name.

One possible solution may be to sell off its DRAM business. On Wednesday morning, the Nihon Keizai Shimbun paper reported that Elpida Memory Inc., a joint venture of NEC Corp. and Hitachi Ltd., is considering buying Mitsubishi Electric's DRAM unit and the two companies could reach an agreement in mid-October.

However, Mitsubishi Electric said no agreement had been finalized. "At this point, we are not planning to make such an announcement in mid-October," the spokesman said.

For its part, Elpida has said it plans to soon make an announcement but declined to confirm whether that announcement would be related to Mitsubishi Electric. "We cannot comment whether this announcement is regarding an alliance with Mitsubishi Electric and when this is taking place. However, we will be making an announcement soon," an Elpida representative said.

Falling DRAM prices and competition from companies in Taiwan and South Korea hit many Japanese chip makers hard last year. Companies such as Fujitsu Ltd. and Toshiba Corp. have already withdrawn from the business. Looking for a way out, Mitsubishi Electric and others are trying to reform their semiconductor businesses by cutting down on DRAM sales and shifting their focus to system LSI.

"By last year's earnings, our DRAM sales were down to five percent of our semiconductor business. More than half of our DRAM products are now manufactured by a Taiwanese foundry, too," the Mitsubishi spokesman said. The company plans to further reduce its DRAM sales, he said.

However, DRAM is still an important product for Mitsubishi Electric and the company wants to take advantages of related technologies that it owns, the spokesman said. Whether the company will continue to operate a small DRAM business has not been determined, he said.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Kuriko Miyake

Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?