ProMOS enters DRam fray

Manufacturer will attempt to reinvent itself as leading DRam supplier

ProMOS Technologies has announced plans to enter the fiercely competitive DRam memory market next year with its own brand of products.

The Taiwanese DRam manufacturer will attempt to reinvent itself as a leading supplier in its own right.

The surprise move comes just six months after German DRam supplier Infineon Technologies severed its links with ProMOS, then a joint manufacturing venture with Taiwan-based memory outfit Mosel Vitelic, after it alleged that Mosel was abusing its position in the alliance.

As a result ProMOS lost a deal to produce almost half of Infineon's DRam needs and was prevented from using Infineon DRam technology in its products.

However, a recent technology sharing agreement with Japanese DRam supplier Elpida has opened the way for ProMOS to create its own brand.

Until now, it has been using the Mosel brand and distribution networks to supply DRam to major OEM clients including IBM, Hewlett-Packard, Sony and Dell.

Albert Lin, a representative for ProMOS, said the company will have sufficient budget for its 2004 brand-name initiatives and that it will take a year to build a distribution network independently from Mosel, which has left the DRam market to concentrate on Flash.

ProMOS expects to ship its own-brand DRam in the third quarter of 2004 but small amounts may hit the market as early as Q1 2004.

The decision has been greeted with some confusion. Vincent Hunter, director at ValueRAM Europe, said: "Why anyone wants a share of this unprofitable and unstable market is beyond me.

"The DRam market needs stability more than it needs another DRam supplier. More suppliers just confuses the market and brings down the quality of the products.

"Most players move from supplying their own DRam to becoming foundries for others, but this is the opposite."