TFE to launch DRAM futures next year

Taipei, Dec. 2, 2003 (CENS)--Taiwan Futures Exchange (TFE) will debut dynamic random access memory (DRAM) futures next year as a step of continually introducing new financial commodities to the local futures trading market.

To that end, TFE Chairman T.S. Wang recently called on Huang Chung-jen, chairman of Taipei Computer Association, and some representatives of domestic enterprises in an attempt to compile DRAM spot price index in the first half of next year.

The enterprises included Promos Co., Nanya Technology Inc., Powerchip Corp., Asustek Computer Inc., Acer Inc., TwinMos technology Inc., Yosun Co. etc. These firms cover upstream manufacturers of DRAMs, midstream manufacturers of memory modules, downstream manufacturers of computer hardware, and semiconductor distributors.

TFE's Wang said domestic DRAM producers and buyers are eager to see the introduction of DRAM futures because Taiwan is a DRAM production center in the world.

TCA said it will take charge of collecting the information concerning DRAM spot prices by setting up a price-quoting platform. The association anticipated it would complete the compilation of DRAM spot price index sometime in the first half of next year.

At present, South Korea commands a 43% share of the world's DRAM market, followed by Taiwan with 23%, the U.S., 17%; Germany, 12%; and Japan, 5%. Of them, Japan has gradually phased out of the DRAM market. With integrated manufacturing capability, Taiwan is one of the most qualified nations to introduce DRAM futures.

TFE said it has commissioned a professional institution to study the feasibility of introducing DRAM futures. The result of the feasibility study has yet to come out.