Elpida selling over 50 percent of mobile chips to Apple: source

Reuters News
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Posted: May 18, 2012 3:13 PM
Elpida selling over 50 percent of mobile chips to Apple: source

SEOUL (Reuters) - Japan's Elpida Memory Inc has been supplying more than 50 percent of its production of dynamic random access memory (DRAM) chip for mobile devices to Apple Inc since late last year, a source with direct knowledge of Elpida's sales breakdown said on Thursday.

"Elpida resorts to one single customer for its mobile DRAM supplies and it's been selling over 50 percent of output from its 30 nanometer class design to Apple," said the source.

The source declined to be named as he was not authorized to speak to the media.

"Apple has been diversifying its suppliers and the deal with Elpida had no major impact on other major suppliers as Elpida's share of the global mobile DRAM market is quite small."

Another source familiar with the matter said Apple was sourcing around 30 percent of its mobile DRAM requirements from Elpida.

Taiwan's DigiTimes, an online trade news site, reported that Apple recently placed large mobile DRAM orders with Elpida's 12-inch plant in Hiroshima, Japan, sending shares of Samsung and SK hynix tumbling on Wednesday.

Samsung shares extended losses to over 2 percent in early trade on Thursday, after opening down slightly and losing more than 6 percent in the prior session.

(Reporting by Miyoung Kim; Editing by Jonathan Hopfner)