ProMOS Technology chairman ML Chen has urged the Taiwan government to throw a lifeline to the DRAM industry to helping it undergo fundamental changes during the current difficulties.

The government is mulling whether efforts should be made to salvage Taiwan's DRAM industry, whose major makers have been making huge losses since 2007. For the first three quarters of 2008, combined losses amounted to NT$90.83 billion (US$2.73 billion), and losses are expected continue in the fourth quarter as the DRAM market worsens due to the global economic problems.

While Taiwan's DRAM industry is on the verge of collapsing, there have been calls from some industrial leaders that the government should not waste efforts trying to save the DRAM industry.

But Chen, whose company incurred net losses of NT$22.46 billion in the first three quarters of this year, said that although Taiwan's DRAM industry is not making money, it has contributed much to the nation's semiconductor industry, helping build up the backend packaging and testing sector, as well as the downstream module sector.

It will be a pity if the government gives up on us, Chen said, claiming it is a good time for the government to help bring fundamental changes to the DRAM industry, such as development of home-grown technologies.

Taiwan's DRAM industry has often been criticized for relying on technologies supplied by foreign companies.

Chen suggested the government should introduce aid programs including restricted bank loans. DRAM makers would not be allowed to use the loans only for capacity expansion, but must also use the funds for technological research and development, he said.

By: DocMemory
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