$50m into DRam firm
Kingston Technology invests $50m into DRam maker Elpida Memory
Kingston Technology has invested $50m in DRam maker Elpida Memory, but the firm is remaining tight-lipped about the motive behind its investment.
The vendors signed a deal last week under which Kingston will invest the cash in exchange for non-voting stock.
Peter Hillocks, director of European inside sales at Kingston, said: "It is a logical step to get closer to DRam vendors."
Andy Buss, senior analyst at Canalys, said a likely explanation is that Kingston wants to secure a guaranteed supply of new products.
"This seems to be an investment in a firm that is increasing its profile. It is a more strategic move for Kingston than anything else," he said.
Glenn Morrison, chairman of memory and storage distributor Upgrade Options, said: "At a time when DRam is forecast to be in short supply, this investment is hugely welcome.
"It's not a surprise to learn that Kingston is investing to ensure availability to its channel as it has always looked after its partners."