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Elpida's impact on Taiwan DRAM sector not yet visible: business leader

Elpida's impact on Taiwan DRAM sector not yet visible: business leader

Taipei, March 3 (CNA) There are still no evident signs that Japanese chip maker Elpida Memory Inc.'s bankruptcy filing will impact Taiwan, a senior executive of Nanya Technology Corp. said Saturday.
"Any possible impact will not be obvious until after the Japanese court makes a decision on whether to approve Elpida's bankruptcy protection petition," said Wu Chia-chau, president of Nanya Technology, the Formosa Palstics Group's (FPG's) DRAM arm. Elpida -- Japan's top and the world's third largest maker of dynamic random access memory (DRAM) chips -- filed for bankruptcy protection with a Tokyo court earlier this week and has promised to unveil a restructuring plan in six weeks. It remains unclear whether its plan would receive support from the court and its creditors. Wu denied a media report that ranking executives of FPG, one of the world's largest petrochemcial groups, had sought government assistance in rescuing the struggling local DRAM industry. DRAM and petrochemicals are two different industries, Wu said, adding that DRAM requires heavy capital investment and has limited gross margins. Elpida has factories based in Taiwan and its local partners include Rexchip, Powertech Technology Inc. and Walton Advanced. Speaking of the DRAM sector's future outlook, Wu said the Elpida case shows that "technology sectors should not just make one single product." Nanya Technology, which shares DRAM technology patents with U.S. chip-maker Micron Technology Inc., will try to develop diversified products in the future to secure its survival in the business, he said. According to Nanya Technology, it owns both 8-inch and 12-inch fabs and has started mass production of 42-nanometer (nm) stack technologies from the fourth quarter of 2010. Nanya forged cooperative relations with Micron in 2008. Both companies have successfully conducted 42 nm development and 3X nm technologies are being developed jointly in research and development labs, according to the company's website.
(By Chao Hsiao-hui and Elizabeth Hsu)


Updated : 2021-04-21 15:43 GMT+08:00