Taiwan's Industrial Development Bureau indicated that it will no longer pursue its earlier targets set for 12-inch fab construction and will ease regulations in order to help Taiwan's DRAM industry amid an observed decrease in production value in 2007.

According to estimates , the production value of Taiwan's memory industry posted a 14% on-year decline to less than NT$250 billion (US$8.1 billion) due to severe oversupply.

Projecting the DRAM price trend for 2008, the oversupply should weaken as PC sales are expected to grow by more than 10% on year, with a corresponding price rebound likely in the second half of 2008.

While the oversupply of DRAM has prompted Taiwan's government to be conservative about new fab construction, the officials have an optimistic outlook for NAND flash. NAND flash should deliver stronger growth than DRAM. But Taiwan memory makers still lack of the flexibility to tune their capacity mixture between DRAM and NAND flash amid an absence of a complete patent portfolio.

By: Docmemory
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