Japan's Elpida Memory, Inc., one of the world's biggest computer memory chip manufacturers, has announced plans to jointly invest USD5 billion with two Chinese investors to build a chip factory in Suzhou.

According to Elpida Memory, the company will build a joint venture with the Suzhou government and another company, whose name was not released. As the biggest shareholder of the joint venture, Elpida Memory will own a 39% stake. The company says that the chips produced in the new factory will be mainly offered to China's PC market.

The joint venture will be located on a site area of 320,000 square meters and the main factory space will reach 91,000 square meters. With an initial production capacity of 40,000 wafers, the factory is expected to start in the first quarter of 2010. Elpida's 50 nanometer DRAM process technology will be used at the beginning and migration to 40 nanometer will take place as soon as the process is ready.

Yukio Sakamoto, president and CEO of Elpida, says that they believe it is critical to invest in the rapidly growing China market to better serve their customers. The jointly venture is an opportunity for Elpida to strengthen its production and marketing profile in China and the entire Asian market.

Suzhou Venture Group is the one that represents for the Suzhou government to invest in the joint venture. Founded in September 28, 2007, Suzhou Venture Group was reconstructed on China-Singapore Suzhou Industrial Park Ventures. The company is now a leading investment corporation that is managing several subsidiaries, including China-Singapore Suzhou Industrial Park Ventures, Cowind Seed-Stage Fund and a fund guarantee company.