Elpida Memory will gradually transfer its DRAM production lines to Rexchip Electronics in the coming year, as part of the company's measures to combat the appreciation of the Japanese yen, according to president and CEO Yukio Sakamoto. The Taiwan-based subsidiary will play an increasingly important role in Elpida's DRAM supply to customers worldwide, said Sakamoto.

Sources familiar with Elpida's capacity-transfer plans have revealed that the company is looking to move all of its PC DRAM and other commodity chip production to Rexchip, and its Hiroshima plant will be dedicated to producing customized mobile RAM and other niche-market memories. Rexchip's second 12-inch fab, R2, is expected to house Elpida's produciton, the sources indicated.

Rexchip's R2 has been left idle since the shell construction was completed at the end of 2008 when the DRAM sector was being hit by a general slowdown in the PC market. Rexchip, which is 64% owned by Elpida, currently operates one 12-inch fab (R1) that is capable of processing 85,000 wafers a month.