2nd UPDATE: Taiwan Government To Invest Up To NT$30 Billion In DRAM Cos
21 Julho 2009 - 8:40AM
Dow Jones News
Taiwan's government plans to invest up to NT$30 billion in one
to two local dynamic random access memory chip makers, Jung-Chiou
Hwang, vice minister of economic affairs, said Tuesday.
The investment will go to the company or companies that can
carry out restructuring plans to enhance the DRAM industry's
competitiveness, he said.
His comments come after the government said earlier Tuesday the
DRAM makers that will be eligible for such investment include
companies that can gain access to foreign firms' intellectual
property rights, propose plans to jointly develop next-generation
technologies with foreign partners, and consolidate through mergers
and acquisitions.
The government will set up a committee to review DRAM makers'
proposals. Companies should submit their applications within three
months, the vice minister said.
Powerchip Semiconductor Corp. (5346.OT) is considering applying
for the government investment, company spokesman Eric Tang said
Tuesday.
"Powerchip meets the conditions the government has set," Tang
said. Powerchip is Taiwan's second-largest DRAM maker by revenue
after Nanya Technology Corp. (2408.TW).
Global DRAM makers have suffered from consecutive quarterly
losses since last year after a supply glut drove chip prices well
below their manufacturing costs. Prices have slowly rebounded this
year after companies cut production and capital expenditure
budgets. Many have sought help from their governments to ride out
the DRAM sector's worst downturn since 2001.
The Taiwan government said in March it will set up a new chip
company called Taiwan Memory which will be tasked with developing
next-generation chip technologies to increase the island's
competitiveness in the DRAM sector. In April, Taiwan Memory chose
Japan's Elpida Memory Inc. (6665.TO) as its technology partner. At
the time, Minister of Economic Affairs Chii-ming Yiin said the
government may invest less than NT$10 billion in Taiwan Memory.
Yiin said earlier this month that Formosa Plastics Group
submitted a proposal seeking NT$20 billion to NT$30 billion for its
memory-chip units, Nanya Technology and Inotera Memories Inc.
(3747.TW).
Inotera is a joint-venture between Nanya and U.S. chip-maker
Micron Technology Inc. (MU).
-By Jessie Ho, Dow Jones Newswires; 88622 502-2557;
jessie.ho@dowjones.com