Features - Storage Innovations:

ELPIDA TO MAKE NEXT-GENERATION DRAM FOR INTEL-PAPER

Elpida Memory Inc, a joint venture between Japan's Hitachi Ltd 6501.T and NEC Corp 6701.T, plans to mass produce next-generation DRAM chips for Intel Corp's INTC.O new microprocessing unit.

Elpida will produce a 512M DRAM chip called DDR2, which has a data transfer speed of 533Mbps, making it suitable for use in high-performance computers and servers, the Nihon Keizai Shimbun business daily said.

Officials at the venture were unavailable for comment.

The U.S. chip giant is expected to officially approve Elpida's DDR2 as a recommended item.

This means that manufacturers of servers and personal computers that will be equipped with Intel's new unit will almost automatically purchase Elpida's DRAM chips, the paper said.

Elpida has been looking for foreign partners, possibly including Intel, to help expand a cutting-edge plant and reduce costs, while it faces tough competition from South Korean rival Samsung Electronics Co 05930.KS.

It is negotiating to have Intel invest about 20 billion yen ($170 million) to expand a plant in Hiroshima prefecture, and expects to manufacture 500,000 units of the 512M DRAM chip a month in the October-December quarter, the paper said.