The Taiwan government's pending consolidation plan for the island's struggling memory chip industry will be unveiled later this week, at the earliest, with the introduction of Taiwan Memory. Sources familiar with the plan have revealed that John Hsuan, vice chairman emeritus of United Microelectronics Corporation (UMC) and Yukio Sakamoto, president and CEO of Elpida Memory, have been elected to direct the state-run DRAM entity.
Hsuan will lead Taiwan Memory as the chairman, and Sakamoto will be appointed to the chief executive post. Meanwhile, Stephen Chen, president of Rexchip Electronics, the joint venture between Elpida and Taiwan's Powerchip Semiconductor Corporation (PSC), has been chosen for the president/ general manager position.
Apparently, Japan's Elpida and its Taiwanese partners have been tentatively favored to operate Taiwan Memory, which will have a budget of NT$70 billion (US$2.06 billion) from Taiwan's government, according to the sources. However, the sources did not rule out the possibility that US-based Micron Technology and its Taiwan partner (Nanya Technology and Inotera Memories) will also be involved in the Taiwan government's long-term goal for Taiwan Memory.
Initially Taiwan Memory will source technology and IP from Elpida, while Rexchip will run the integrated platform focusing on 12-inch wafer production, said the sources. Monthly capacity at Taiwan Memory may total at least 190,000 units (12-inch equivalent) after consolidating potential players, and is expected to reach the 300,000 mark in the future, the sources estimated.
Taiwan Memory, with the government being its largest shareholder, will be located in Taichung Science Park (TSP), Taiwan, the sources noted. The state-run company will also seek new investments from other enterprises, including DRAM players in Taiwan and from abroad.
As reported earlier, DRAM production (12-inch equivalents) in Taiwan slid 15.1% sequentially to 203,000 units in January 2009, compared to a 2.7% drop in worldwide output.
John Hsuan, vice chairman emeritus of UMC
Photo: Terry Ku, Digitimes, March 2009
Article translated by Jessie Shen
