Friday, March 14, 2008
While South Korean chip giants such as Samsung Electronics and Hynix Semiconductor have recently clashed over the issue of a ``technology transfer’’ to overseas rivals, Taiwan-based computer chipmakers are forming a united front to inject massive amounts of cash into new next-generation plants.
Experts say their ongoing ``consolidation’’ moves will accelerate further as Taiwanese manufacturers, South Korea’s biggest competitors in memory chips, seek to sharpen their technology competitiveness.
``Unlike wider market expectations, Taiwanese firms will fall into the hands of bigger rivals due to their technology limits and unfavorable market conditions. Taiwanese chipmakers are aiming to take an initiative in the industry, an ominous sign for Korean firms,’’ an industry source said on Thursday.
``The South Korean government needs to draw a new blueprint for IT policies to help boost the competitiveness of local chipmakers,’’ the Samsung Economic Research Institute said in a report.
On Wednesday, Taiwan Semiconductor Manufacturing Co. (TSMC) announced that it will spend $5 billion over the next few years for a 12-inch plant, aiming to develop next-generation technologies with circuit widths of 32-nanometer or less. In making chips, bigger wafers enable more efficient production.
TSMC is the world’s top ``contract’’ chipmaker.
Taiwan’s No. 1 DRAM chipmaker Powerchip also plans to open two factories to manufacture the chips widely used in PCs. This comes in addition to a joint venture with Japan-based Elpida Memory.
``The news is not good for Korean companies. When the Taiwanese players start to churn out advanced chips probably from 2010, their Korean competitors will face tougher competition,’’ another industry source said.
``Even though DRAM prices plunge, the Taiwanese firms expect demand to remain steady. That’s why they decided to invest,’’ the source added.
Experts say Taiwanese chipmakers have gained cost competitiveness by utilizing low-cost manufacturing bases, vertical integration and mass production systems.
``Strengthening partnerships between local manufacturers will be another option for South Korean chipmakers, though the possibility is low at the moment,’’ a local chip expert said, asking not to be identified.
By: DocMemory
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