Elpida says to buy Spansion flash memory assets

sources: Reuters    4/3/2010 16:43:38

Japan's Elpida Memory Inc (6665.T) said it plans to buy the flash memory assets of U.S. chipmaker Spansion (SPSNQ.PK) on Thursday.

Elpida, which is chasing DRAM sector leaders Samsung Electronics (005930.KS) and Hynix Semiconductor (000660.KS), aims to offer semiconductor modules that combine DRAM and flash memory function. Those modules are increasingly used in smart phones, such as Apple Inc's (AAPL.O) iPhone.

Elpida spokesman Hiroshi Tsuboi said the company is in talks to acquire Spansions flash memory technologies as well as 40-50 engineers in Italy. He declined to comment how much the company would spend on the purchase

The Nikkei business daily reported earlier in the day that the Japanese DRAM chipmaker will pay 3-5 billion yen ($34-57 million) to acquire Spansion's NAND flash memory-related assets.

Hit by the global economic downturn, Elpida received an injection of public money last year.

Spansion, which was established as a joint venture between Japan's Fujitsu Ltd (6702.T) and U.S. Advanced Micro Devices Inc (AMD.N), filed for bankruptcy last March.

(Reporting by Nobuhiro Kubo)