Taiwan Memory Company to consolidate Taiwan’s DRAM industry
-- EDN, March 5, 2009
The Taiwan Ministry of Economic Affairs (MOEA) will set up a new company within six months as part of its efforts to consolidate Taiwan's ailing DRAM industry, Economics Minister Yiin Chii-ming announced March 5. The soon-to-be-established Taiwan Memory Company (TMC) will first form a strategic alliance with a foreign partner before further negotiating with Taiwan's six existing DRAM manufacturers for possible consolidation through mergers and acquisitions, Yiin said.
John Hsuan, honorary vice chairman of United Microelectronics Corp., was appointed a coordinator of the project and will help with the preparation for the launch of TMC, Yiin added.
In principle, Yiin went on, TMC will choose between Japan-based Elpida Memory Inc. and US-based Micron Technology Inc. as an alliance partner. However, he added, if the two companies offer equally favorable terms and conditions, the MOEA will not rule out the possibility of establishing partnerships with both. He said TMC will not be a state-run business; government investment in the company will not exceed 50% of its total capital.
Hsuan said he will soon recruit a team to negotiate with Elpida and Micron for the acquisition of related intellectual properties and technologies. Hsuan said he aims to complete the negotiations within three months, so that TMC will be able to begin research and development as soon as it is established six months from now.
According to Hsuan, although talent abounds in Taiwan's chipmaking sector, failure to control key intellectual properties has limited the sector's development. TMC's establishment is expected to help enhance the competitiveness of Taiwan's DRAM industry, he added.
On TMC's future relations with Taiwan's six existing DRAM chipmakers, Hsuan said the company will only begin looking for partner manufacturers after possessing self-developed technologies.
