Claim: Taiwan’s DRAM industry needs cash now, not consolidation

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Claim: Taiwan's DRAM industry needs cash now, not consolidation

Taipei (Taiwan) – Powerchip Semiconductor’s chairman, Frank Huang, said today that an immediate cash bailout should be given priority in the government’s rescue plan for the Taiwan DRAM industry over efforts to push for an industry consolidation – which can be discussed later, according to DigiTimes.

The government’s desire to have key intellectual property transferred to Taiwan’s DRAM industry, a subject which has been discussed significantly in recent weeks, seems an unrealistic approach to an immediate need. While it will undoubtedly bolster DRAM sales and profits, the reality is that buying that IP takes time. And the Taiwan DRAM industry needs a bailout now.

Talks of merging some makers with others are also facing resistance and difficulties as there are fundamental aspects of business which need to be addressed, such as short-term and long-term debt obligations.

The DRAM industry has been hit very hard, not only due to the recent global economic downturn, but also due to a previous problem – that of inventory oversupply and falling prices.

See DigiTimes.