Elpida Memory has announced that Taiwan-based Walton Advanced Engineering, which provides packaging and testing services mainly for DRAM products, has agreed to make a JPY3.75 billion (US$50 million) investment in subsidiary EBS.

Walton will purchase 7,500 preferred shares of EBS with the transaction scheduled to complete by mid-December, according to Elpida.

"Walton and Elpida have a long-standing strategic partnership. The share transaction is expected to strengthen the relationship between the two companies," said Elpida in a statement. "Also, the share transfer will help bolster Elpida's financial strength. In the face of the severe DRAM market and turmoil in global financial markets, including record-breading appreciation of the Japanese yen, Elpida is looking at multiple opportunities to improve its financial position."

Earlier in 2011, Powertech Technology (PTI) acquired 8,200 preferred shares of EBS for JPY4.1 billion. PTI is also among Elpida's industry partners for test and device packaging.

EBS is a wholly-owned subsidiary of Elpida, responsible for the chipmaker's outsourcing business.