We reported back in March that the RAM inside the new iPad is 1GB DRAM comprised of two 4GB Elpida LP DDR2 parts.

Now DigiTimes has reported, citing industry sources, that Apple has placed large orders for DRAM with Elpida. The orders apparently account for half the Elpida's total chip production at its Hiroshima, Japan plant.

It is claimed that Samsung lost $10 billion of its market value following news that Apple switched suppliers. Wednesday's decline was the biggest daily fall in nearly four years for Samsung.

"It looks like Apple doesn't want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running," LIG Investment & Securities analyst Choi Do-yeon told .

Citing lower-than-anticipated sales memory supplier Elpida is currently seeking a $1.2 billion lifeline from the Japanese government.