WASHINGTON A U.S.-based group that lobbies on behalf of Taiwan is backing a proposed government bailout of Taiwan's ailing DRAM industry.
The U.S.-Taiwan Business Council (Arlington, Va.) said Tuesday (Dec. 16) that government "assistance is imperative to inject needed liquidity and to safeguard the future of this vital sector during the global recession."
The group noted that many Taiwanese DRAM companies have major debt obligations to Taiwan banks. Moreover, a restructuring of the entire DRAM industry is underway.
Council president Rupert Hammond-Chambers noted in a statement that U.S. chip makers like Micron Technology continue to invest in Taiwanese DRAM makers. Micron has so far invested $400 million in Taiwan's Inotera Memories, acquiring German chip maker Qimonda's 35.6 percent stake in the DRAM joint venture with Nanya Technology Corp.
At least one industry analyst has warned that DRAM industry bailouts in Taiwan and possibly South Korea would be "a disaster" for the sector.