Taiwan DRAM maker, Nanya Technology Corp., has not committed to the Taiwan Government's proposed memory venture and is still evaluating the concept. Reports have surfaced that another vendor, Powerchip Semiconductor Corp., is unhappy with the government proposal and will merge its operations with Elpida Memory Inc.

And the Taiwan government appears to be changing its tune about the venture. As reported last week, the Taiwan government said it would consolidate all of its DRAM makers and form a new company, dubbed Taiwan Memory Co. Taiwan's DRAM makers include Nanya, Inotera, Powerchip, Rexchip, ProMOS and Winbond.

The Taiwan government will pour $2 billion in the venture, but it will own less than 50 percent of Taiwan Memory, according to reports. The entity will form a partnership with ''either'' Elpida or Micron, according to reports.

Now, after just a week, there could be a slight change in plan. The Taiwan government has ruled out a ''state-led merger'' of the island's DRAM makers, according to Bloomberg. Instead, the venture ''will focus on obtaining technologies and then look for existing plants in Taiwan for manufacturing needs,'' according to the report, which cited Economic Affairs Minister Yiin Chii-ming as its source.

All DRAM makers, including those in Taiwan, are losing money. The Taiwan players may be forced to consolidate or get acquired amid an ongoing downturn in DRAMs.

By: DocMemory
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