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Taiwan government to establish new DRAM company
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In an attempt to soothe the troubled waters of the semiconductor industry, the Taiwan government has, through its economics minister, announced that it will set up a new DRAM firm, selecting either Elpida or Micron as its partner in the next three months. The company, to be named Taiwan Memory Co., is a result of the government’s various efforts to pull the ailing DRAM industry out of its current slump.
Working with the top three DRAM manufacturers in Taiwan, namely, Powerchip, Nanya Technology and ProMOS, the Taiwanese government has been shouldered with the aim of creating an entity that could successfully compete with industry giants Samsung Electronics and Hynix Semiconductor.
The government will hold a less than 50% stake in the new company, but is expected to invite revenue from private investors.
Taiwan Memory Co., the new company, would combine research, production and brand marketing, allowing it to be better placed to compete with the top two global players, Samsung Electronics and Hynix Semiconductor.
In a report in the International Herald Tribune, it was reported that the likely course of events would see the local chipmakers merge into the new company and close older plants, thus reducing the oversupply of DRAM chips.