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Elpida Memory of Japan announced that it had developed the first next-generation ReRAM (Resistance Random Access Memory) prototype using 50nm process technology, reported ITmedia in January 2012.

ReRAM is a type of memory based on a passive two-terminal electrical component called a memristor ("memory resistor") developed by Hewlett-Packard in 2008. ReRAM changes resistance in response to changing electric voltage, so that it’s capable of storing data even when the voltage is turned off and can read/write data at high speeds using little voltage. The new ReRAM also has a memory cell array operation of 64Mbits, one of the highest possible densities for this sort of memory.

The company plans to continue development of its prototype ReRAM, with the goal of beginning volume production of 30nm process Gbit-class products by 2013. If the new ReRAM can be produced economically enough, Elpida sees it as a way to reduce the power consumption of memory in smartphones, tablets, and ultra-thin notebooks.

ReRAM is both fast and non-volatile, combining the best of DRAM and NAND flash memory. While DRAM features high read-write speeds and endurance, it quickly loses data when the power is turned off. NAND flash memory, on the other hand, retains data when the power is off, but is slower than DRAM. ReRAM has a write speed of 10ns, similar to DRAM, and a write endurance of more than 1 million times - 10 times greater than NAND flash.

Elpida co-developed the prototype ReRAM with New Energy and Industrial Technology Development Organization (NEDO), a government-funded public institution in Tokyo. Additional work is now being carried out with Sharp, Japan's National Institute of Advanced Industrial Science and Technology, and the University of Tokyo. [TechInsights]

California-based Global Foundries, one of the world’s largest independent semiconductor foundries, is apparently thinking about establishing an operation in Japan, reported Nikkan Kogyo Shimbun’s “Business Line” in January 2012.

Doing so would allow the company to ramp up capacity quickly and curtail fixed production costs. Global Foundries has approached two Japanese semiconductor manufacturers, Renesas Electronics and Toshiba, about purchasing their main chip fabs.

Global Foundries is interested in acquiring Renesas’s Tsuruoka plant in northwest Yamagata Prefecture and Toshiba’s Oita plant on the southern island of Kyushu. Both facilities are key production sites for the system ICs used in digital electronics. Both plants are also equipped with advanced 300mm wafer-processing equipment.
 
The choice for Renesas and Toshiba is whether to retain ownership of these plants and attempt to improve their profitability, or sell them off and outsource production to other companies.

Reorganization of the semiconductor industry has been accelerating on several fronts lately. In related news, Elpida is seeking an equity tie-up with Micron of the U.S. to help improve its own economic outlook. [TechInsights]

Renesas Electronics of Japan plans to increase the outsourcing ratio of its semiconductor front-end process to 30%, double the current rate, by fiscal 2014 (Apr. 2014 to Mar. 2015), reported Nikkan Kogyo Shimbun’s “Business Line” in January 2012.

The move by Renesas is aimed at controlling its overall investment in infrastructure by outsourcing advanced-technology semiconductor production. The “fab light” strategy is part of the company’s Business Continuation Plan (BCP), which entails using external resources to minimize its own production facilities.

In July 2010, Renesas decided to increase its outsourcing ratio to 25%, as part of its “fab light” strategy. Following the earthquake that devastated northeastern Japan in March 2011, the company redrafted its BCP to increase the outsourcing ratio by 5% more than originally planned to limit the risk of concentrated production.

Renesas’s plant in the city of Hitachinaka, Ibaragi Prefecture, was severely damaged by the earthquake. The facility is a mainstream production site for automotive microprocessors, and the loss of its production capacity adversely affected downstream automakers. [TechInsights]

As part of an effort to restructure its production, Texas Instruments of the U.S. announced that it would shut down two of its older facilities, one in Hiji, Japan, and one in Houston, Texas, reported SankeiBiz in January 2012.

The plant closures will occur over the next eighteen months and cost the Dallas-based semiconductor manufacturer about $215 million. However, it will save the company about $100 million annually in years to come.

The plants are two of the company’s older facilities. The plant in Houston is 42 years old, while the plant in Japan is 32 years old. The Hiji Plant, located in Oita Prefecture, is one of TI’s main mass-production facilities for a wide range of semiconductor products. It also serves as a “mother” factory, providing technology assistance for other factories throughout Asia. Both plants have reached the point where they would require significant upgrades to stay viable. According to TI’s President and CEO Rich Templeton, “It makes financial sense to shift production to larger, more advanced facilities.”

Although the giant semiconductor manufacturer reported a profit of $298 million for the fourth quarter of 2011, that was down from $942 million during Q4 2010. Revenue also fell to $3.42 billion for Q4 2011 compared to $3.53 for Q4 2010. Though disappointing, that performance was better than expected.

TI is looking to cut costs by closing the two factories and increasing employee numbers at other plants. The closures will affect about 1,000 workers at the two plants, or about 3% of the 34,800 workers employed by TI worldwide. The company also picked up about 5,000 workers last year when it acquired chip maker National Semiconductor for $6.5 billion.

Texas Instruments Japan also plans to look for a buyer for its plant in Hinode, Japan, in an effort to maintain current employment levels at the factory. [TechInsights]

Based on its adjusted sales forecast for the fiscal year ending March 2012, Nintendo is expected to post an operating loss of 45 billion yen ($589.9 million @ yen 76.29/$US 1), reported ITmedia in January 2012.

That’s in stark contrast to the original forecast, which predicted a profit of 1 billion yen ($13.11 million). Contributing to the poor showing were slow sales of some of the company's top gaming devices. For example, it reduced its sales forecast for the Nintendo 3DS from 16 million units to 14 million. The company also reduced its sales forecasts for the Wii to 10 million units (from 12 million) and for the Nintendo DS to 5.5 million units (from 6 million). The strong yen also adversely affected on the company’s performance.

Nintendo’s estimated revenue for the period was 660 billion yen ($8.65 billion), down significantly from the original forecast of 790 billion yen ($10.36 billion). The company’s net performance forecast was lowered from a loss of 20 billion yen ($262.17 million) to a loss of 65 billion yen ($852.06 million). [TechInsights]

Sony is apparently seeking an equity tie-up with troubled Japanese camera and medical equipment manufacturer Olympus, reported Reuters in January 2012.

Sony currently has a small 0.03% equity stake in Olympus, but would like to increase that to as much as 20% to 30%.

Sony is known for its advanced image sensor technology, while Olympus currently has a 70% share of the market for medical endoscopes. Although Sony also produces medical monitors that use OEL (organic electroluminescent) panels, it has relatively little experience in the healthcare sector. Linking their operations would bring synergy to both company’s operations, allowing Sony to expand its sales channels and tap into the lucrative market for diagnostic endoscopes.

Apparently, Sony’s not the only company interested in acquiring an equity stake in Olympus. Fujifilm Holdings and Terumo Corp. have also expressed interest. Fujifilm currently has about a 10% share of the market for diagnostic endoscopes. Terumo, a smaller maker of medical products, already holds a small stake in Olympus. [TechInsights]

Hitachi of Japan announced that it would begin restructuring its flat-panel TV business and cease producing its own TVs, which it first began doing in 1956, reported ITmedia in January 2012.

The company, instead, plans to outsource production overseas to curtail production costs and boost profitability. The company’s only production base in Japan, Hitachi Joei Tech in Minokamo, Gifu Prefecture, will cease production of TVs later this year in September and focus on production of components as well as TV repair work. Hitachi will continue selling TVs under its own brand, though production will be outsourced to EMS (electronic manufacturing services) companies in China and other countries.

Hitachi’s flat-panel TV operation first went into the red in fiscal 2005. The company attempted to restore profitability by reducing fixed costs, cutting back overseas operations, and expanding outsourcing. In spite of those efforts, Hitachi does not expect to make a profit for the fiscal year ending March 2012. Blame it on intense competition in the overcrowded, low-margin market for TVs.

The company's TV operation will be moved from Hitachi Consumer Electronics to Hitachi Consumer Marketing, allowing the operation to be driven by the company’s Sales department. Hitachi Consumer Electronics, for its part, will continue developing technology that can be applied to flat-panel TVs and other imaging devices. [TechInsights]

Samsung Electronics of South Korea has acquired Sony’s equity in S-LCD, an LCD manufacturing joint venture established by the two companies, and made the company into a wholly-owned subsidiary, reported Nikkei.com in January 2012.

By making the entity a wholly-owned subsidiary, Samsung Electronics, meanwhile, plans to accelerate decision making on the LCD side. It paid 1.08 trillion won ($9.55 billion @ won 1130.74/$US 1) to acquire Sony’s stake in the joint venture. Henceforth, Sony will procure its LCDs from Samsung Electronics and other manufacturers.

The two electronics giants founded S-LCD in April 2004, with Samsung owning 50% plus 1 share and Sony owning the rest. However, the companies announced in late December 2011 that they were dissolving the joint venture for the mutual benefit of both. [TechInsights]