Kingston Technology will subscribe to new shares of Panram International, a Taiwan-based OEM maker of DRAM modules, for a stake of nearly 25%, becoming the largest shareholder of Panram, according to industry sources in Taiwan.

Panram will issue 12 million shares for private placement at NT$12.24 per share and Kingston will purchase all of them, the sources said.

Panram has become one of Kingston's OEM makers of DRAM modules around the world since 2009, the sources noted. Panram has 16-18 production lines in northern Taiwan, with less than 50% of the capacity used to produce Kingston-brand DRAM modules currently, the sources indicated. After the increased stake investment, Kingston is expected to release OEM orders for DRAM modules from PC ODM/OEM makers to Panram, the sources pointed out.

As its 18 DRAM module production lines in Shanghai, eastern China, has been fully utilized, Kingston is expected to shift orders in excess of the capacity to Panram, the sources indicated.

In addition to Panram, Kingston has its own production base of DRAM modules with 12 production lines in northern Taiwan, with the base mainly undertaking R&D and production of new products, the sources said.