Japanese Elpida DRAM companies to receive Taiwanese Aid
In Taiwan’s effort to consolidate the DRAM industry, the Taiwanese government plans to invest around US$2 billion in a new DRAM company that will include DRAM chip maker Elpida! Micron will not be part of this new company, but is receiving aid itself from Formosa Plastics Group (which includes Nanya and Inotera Memories). Looks like we will see how all of this consolidation in the DRAM industry will effect prices in the coming months.
The Taiwan government has already worked out a DRAM industry consolidation plan, which will be unveiled at the end of this month, industry sources have claimed. Under the plan, Elpida and its Taiwan subsidiary Rexchip Electronics its joint venture with Powerchip Semiconductor Corporation (PSC) will form a new DRAM company with a new brand, the sources said. The Taiwan government plans to inject around NT$70 billion (US$2 billion) to help establish the new company and will become its largest shareholder, according to the sources.
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