Taiwan's recent cabinet reshuffle may create uncertainties and challenges for the newly-established Taiwan Memory Company (TMC), seen as a government-led project to overhaul the island's ailing DRAM sector, according to DRAM makers.

Taiwan on September 9 replaced a number of ministers, including its economics minister Chii-Ming Yiin, in a Cabinet reshuffle in the wake of the government's poor handling of Typhoon Morakot's aftermath. Serious flooding and massive landslides brought by Morakot killed a few hundred people and many others homeless in southern Taiwan last month.

Yiin had been the architect behind TMC, which was officially founded on July 31, and was recently granted approval to locate at the Hsinchu Science Park (HSP).

Apart from Yiin's departure, TMC has failed in its attempt to seek investment from MediaTek and China Development Financial Holdings (CDFH), a Taiwan-based company engaged in provision of financial and investment services, the DRAM makers claimed.

MediaTek on August 14 issued a filing with the Taiwan Stock Exchange (TSE) saying that it was evaluating the possibility of investing in TMC. It was a response to a Chinese-language Economic Daily News (EDN) report that said the IC designer was mulling plans to invest NT$1 billion (US$30.65 million) in TMC.

TMC has received investment commitment from Siliconware Precision Industries (SPIL) and King Yuan Electronics Company (KYEC).

By: DocMemory
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