Taiwan invests NT$30 billion in DRAM firms

Taiwan invests NT$30 billion in DRAM firms

The Taiwanese government is clearly hoping that its investment capital of at least £557 million will keep local DRAM manufacturers afloat.

The Taiwanese government is hoping to prop up its local DRAM industry – currently suffering from the effects of the economic downturn – with a stimulus package of at least NT$30 billion (£557 million).

As reported by PC World, the manufacturers are in financial trouble thanks to the global credit crunch – with sales down, the companies are finding themselves attempting to sell stock which has suddenly reduced in value to an over-saturated market. While there's no reason to believe that the market conditions won't pick up again, the companies will need a bit of aid to help them in the short term.

The government is insisting on a six month process, with companies hoping to get their hands on the funds being asked to complete a proposal – including details on any planned mergers and acquisitions should the money be granted along with the particulars of any deals with foreign companies – within the next three months. Following the receipt of the proposals, the government will carve up the funds within three months.

The money – which the government has said represents investment capital rather than a loan – won't come without strings attached, however: one of the rules states that in order to get a share of the funds, any Taiwanese DRAM manufacturer in partnership with a foreign company should ensure that their contract gives them full rights to use jointly developed technologies without being hindered by patent law. With such a rule on the table companies with foreign partners – such as the Taiwan Memory Company, which already has a partnership agreement with Japanese memory specialist Elpida – may find themselves shut out from funding unless they are able to negotiate a particularly keen deal.

The investment package is sorely needed: DRAM manufacturing and development represents a key portion of the gross national product of Taiwan, and in the last year the big five companies – TMC, Powerchip Semiconductor, ProMOS, Winbond, and Nanya Technology – made a combined net loss of NT$159.49 billion (£2.9 billion) – a four-fold increase year on year.

Are you pleased to see the Taiwanese government doing something to keep its DRAM industry afloat, or were you hoping that desperation might bring rock-bottom memory price still lower? Share your thoughts over in the forums.


Discuss in the forums Reply
oasked 22nd July 2009, 10:11 Quote
I'd rather that those companies were still around than going under, particularly if its not my taxes paying for it.

More companies = more competition = higher quality products for less money. :)
NethLyn 25th July 2009, 10:00 Quote
TMC? Would be good to keep them in the game, if it's the same TMC that gave us 6 PCI slots on a Socket 7 AMD board (TI5VG IIRC). If memory's mainly what they do now, then any government help is good. I'll save the political rant about our Government not giving a stuff about industry, as they don't have long to go.
Log in

You are not logged in, please login with your forum account below. If you don't already have an account please register to start contributing.

Discuss in the forums