Taiwan Gov't Urged to Integrate DRAM Industry Against Samsung

Taipei, May 24, 2011 (CENS)--Kingston Technology Co., Inc. Co-Founder David Sun recently said Taiwan government should integrate the island's DRAM makers against Samsung, with an ultimate goal of bringing in Taiwan Semiconductor Manufacturing Co. (TSMC), AU Optronics Corp. (AUO), HTC Corp., and PowerChip Semiconductor Corp. (PSC).

Sun pointed out that Samsung has ventured into various crucial electronics industries that operate independently in Taiwan, allowing it to leverage resources of its subsidiaries to support it in various competitions including DRAM arena. In addition, South Korean banks usually throw their weight behind their fellow enterprises in need.

But Taiwan's high-tech industries, just like the island's traditional industries operating on a small-to-medium scale, do not have many resources to support their competition. Besides, the island's banks are usually reluctant to financially support struggling local manufacturers given their much smaller sizes than their South Korean mega-size counterparts.

Sun analyzed that although Taiwan's electronics manufacturers are not short of advanced technologies, they have been engaged in tough competition with Samsung mainly because of the lack of an environment that encourages the formation of powerful business groups.

In light of the huge loss currently plaguing most of the island's DRAM-chip makers, Sun suggested the government should put up US$2 billion to help poorly developed DRAM makers integrate, with ultimate goal of pulling in the island's leading manufacturers in silicon-foundry, flat-panel and handset industries to the integration campaign.

Sun thought an integration of TSMC, AUO, HTC and PSC into one would be “an optimum situation” although it is an impractical expectation.