Asia Express - Consumer Electronics
Taiwan Government Plans to Consolidate DRAM Makers into One or Two Groups
July 24, 2009
The Taiwanese government plans to invest a fund of up to NT$30 billion (US$911.9 million; US$1=NT$32.9) in restructuring Taiwan's DRAM (Dynamic Random Access Memory) industry and to consolidate the existing DRAM makers into one or two groups, Economic Daily News of Taiwan reported. According to explanations by the Industrial Development Bureau under the MOEA (Ministry of Economic Affairs), the fund will go to DRAM makers which fulfill the following four requirements: access to foreign companies' intellectual property rights, advantages in technology R&D, plans for cultivation of professional talents, and industry consolidation through mergers and acquisitions.

As per the MOEA's DRAM industry restructuring scheme, one of the two remaining groups will be TMC (Taiwan Memory Company), a new fables semiconductor company founded by the Taiwanese government to help revitalize Taiwan's DRAM industry. TMC has formed technology partnership with Japan's Elpida Memory and has obtained access to Elpida's 50nm technology. It is also reported that current forerunners for the other consolidated group consist of Nanya Technology and Inotera Memories, both affiliated with Taiwan's Formosa Plastics Group and partnered with US chip maker Micron Technology.

The MOEA said that DRAM makers intending to participate in the DRAM industry restructuring scheme will have to submit applications within three months, by October 21, 2009. All applications and proposals will be reviewed by a dedicated committee consisting mainly of scholars, to be organized by the government.