Monday, April 13, 2009
Micron Technology Inc. and its DRAM partner have rejected a plan to join a state-led memory venture in Taiwan. And in a new twist, Micron and its partner are asking for aid from the Taiwan government.
As expected, Micron and its partner, Nanya Technology Corp., decided not to join Taiwan Memory Corp. (TMC). The memory venture recently announced plans that it is working with DRAM rival Elpida Memory Inc. of Japan, which raised questions about Micron's interest in TMC.
''Micron, Nanya and Inotera have decided not to join TMC as it has currently been structured,'' according to the companies. As reported, Micron recently acquired Qimonda AG's share in a joint DRAM venture with Nanya in Taiwan, dubbed Inotera Memories Inc.
Micron and Nanya ''intend to have closer cooperation in increasing R&D activities in Taiwan,'' according to the companies. Micron and Nanya ''request the same support from (the) Taiwan government as what TMC is getting.''
The companies did not elaborate. The Taiwan government will pour $2 billion in TMC, but it will own less than 50 percent of the venture, according to reports.
At the same time, ''Nanya and Inotera will get financing from Formosa Plastics Group,'' the companies said. Nanya's parent company, Formosa Plastics, has recently injected funds in the DRAM company, it was noted.
Micron's decision was telegraphed last week. As reported, Japan's Elpida last week was selected as a strategic technology partner of TMC. The Taiwan government is bailing out the island's loss-ridden DRAM sector.
As part of the proposed plan, Taiwan wanted to consolidate many 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 entity was planning to form a partnership with either Elpida or Micron. Elpida was given the nod, creating some confusion in the market. Within TMC, Elpida may help to consolidate several DRAM makers in Taiwan, including Powerchip, Rexchip and possibly ProMOS.
It is unclear where TMC is going--or, for that matter, if the entity will survive. Powerchip has raised questions about TMC. And now, Micron and Nanya will go it alone amid the ongoing downturn in DRAMs.
By: DocMemory
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