Group backs bailout for DRAM makers
The group said Dec. 16 that government "assistance is imperative to inject needed liquidity and to safeguard the future of this vital sector during the global recession."
It noted that many Taiwanese DRAM companies have major debt obligations to Taiwan banks. Moreover, a restructuring of the entire DRAM industry is underway.
Council president Rupert Hammond-Chambers noted in a statement that U.S. chipmakers like Micron Technology continue to invest in Taiwanese DRAM makers. Micron has so far invested Rs.2,001.46 crore ($400 million) in Taiwan's Inotera Memories, acquiring German chipmaker Qimonda's 35.6 per cent stake in the DRAM joint venture with Nanya Technology Corp.
At least one industry analyst has warned that DRAM industry bailouts in Taiwan and possibly South Korea would be "a disaster"for the sector.
- George Leopold
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