Memory-module maker Transcend Information is preparing to shift its production base back to Taiwan, and will set up a new plant with a production capacity of 7.7 million modules per month, according to company chairman Peter Su. The remark follows the announcement of Taiwan Memory Company (TMC), a government-led consolidation plan for the island's memory-chip industry.

The government-led consolidation project will help stabilize DRAM chip prices, which is a good sign for memory module makers, said Su. In a breakdown of capacity by geography, Taiwan Memory will be able to bring a more than 50% share of the global DRAM chip sector, outperforming Samsung Electronics of South Korea.

Transcend will install a total of 20 production lines at its new manufacturing site in Neihu, Taipei, Su said. The pending plan comes in line with the thoughts of the Taiwan government's policy to foster the local DRAM industry. Currently, China fabs contribute 70% of Transcend's overall capacity.

As reported in March 2008, Transcend has been mulling the constructing of a large production base in Taiwan. The operation of the new plant is scheduled to kick off by the third quarter of this year.

In related news, DRAMeXchange forecast in its latest press release that if Taiwan Memory succeeds in its consolidation efforts and fully utilizes 50nm process technology, overall capacity at the island's DRAM chipmakers is estimated to total 480,000 wafers (12-inch equivalent) per month, with a 34.4% market share, and challenging Samsung.

By: DocMemory
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