How is memory synthesized by quartus ii ?

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The tool will be converting this into logic elements. Is this correct??

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In page 11 in the paper I referred earlier (my apologies for referring to an older paper). There are different ways a memory is implemented this can be using dedicated RAM blocks, logic cells etc. By default the fitter selects what it thinks is the best way to fit your design. You can use for example the Assignment Editor to specify if it should use a specific location.