Elpida Memory, Japan's leading global supplier of Dynamic Random Access Memory (DRAM), today announced that its Board of Directors has decided to acquire a portion of the shares its strategic partner Powerchip Semiconductor Corporation (PSC) owns in Rexchip Electronics Corporation (Rexchip), a Taiwan-based manufacturing joint venture created by PSC and Elpida. Details of the share acquisition appear below.

Share acquisition background
The prolonged slump in DRAM market prices is currently helping to clarify which DRAM makers will remain as going business concerns. This situation is serving to place Elpida in a relatively more advantageous position in the industry. Given this environment, Elpida has decided to increase its stake in Rexchip above its current 48.8% holding for the purpose of adjusting capacity allocation in order to achieve better supply-demand balances in the DRAM spot market and in the market for DRAMs supplied to major PC makers. While Elpida has the utmost respect for PSC as a partner in the Rexchip joint venture it believes Rexchip can achieve faster business decision-making capabilities by becoming an Elpida subsidiary.

Changes in significant subsidiaries
Elpida plans to acquire a 52.0% stake in Rexchip by purchasing a portion of the Rexchip shares held by PSC by the end of FY 2008 (March 2009). The acquisition will result in Rexchip becoming a consolidated subsidiary of Elpida.

Overview of the planned subsidiary
Corporate Name: Rexchip Electronics Corporation
Chairman: Frank Huang
Head quarters: HouLi, Taichung County, Taiwan
Established: November 10, 2006
Major operations: DRAM wafer processing
Fiscal year ending: December 31
Number of employees: 2,067 (as of September 30, 2008)
Office: Head quarters

Schedule for the acquisition
During March 2009

Future outlook
Based on this share acquisition, Elpida plans to make Rexchip a consolidated subsidiary. The effect of the acquisition on Elpida's FY 2008 earnings performance is expected to be minimal.

Overview of PSC (the company selling shares to Elpida)
Corporate Name: Powerchip Semiconductor Corporation
Chairman: Frank Huang
Head office: Hsinchu, Taiwan
Major operations: Manufacturing of and foundry services for semiconductor products

Number and value of shares acquired
Number of shares acquired: 94,251 thousands shares (3.2% to number of shares issued and outstanding)
Value of shares acquired: TBD

Shareholding ratios before and after transaction
Shares held before transfer: 1,426,801 thousands shares (Shareholding ratio: 48.8%)
Shares held after transfer: 1,521,052 thousands shares (Shareholding ratio: 52.0%)