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 have already withdrawn from the business.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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Kuriko Miyake

Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?