Taiwanese banks warm to DRAM makers Powerchip, Winbond

new production line technology able to increase the number of chips rolling off production lines while lowering costs by 20 percent.

"Our business restructuring plan will not hinder the elimination of the excess supply in the industry," Elpida said in the statement.

Excess supply has been the fear many analysts and industry watchers raise as DRAM makers obtain new sources of cash from business partners and banks. Many DRAM makers have shuttered factories amid the global recession, but could reopen them if chip prices increase, and thereby flood the market with cheap DRAM again. The scenario would be good for users because it would keep DRAM cheap, but it would be devastating for companies trying to return to financial health after a two year chip glut.