Powerchip Semiconductor Corp (力晶半導體), the nation’s biggest computer memory chipmaker, yesterday said it may unveil its own industry consolidation plan with Japanese partner Elpida Memory Inc as early as next week.
Powerchip was not satisfied with a proposal made by the government to help DRAM makers ride through the industry’s severest downturn yet. The government proposed forming a state-funded firm, Taiwan Memory Co (TMC, 台灣記憶體公司).
Taiwan’s ailing makers of DRAM computer memory chips had been pinning hope on a capital injection from the government through the new company to help them resolve pressing financial difficulties.
But TMC head John Hsuan (宣明智), in a reversal of the original blueprint laid out by the government, said the new chipmaker would not put consolidation efforts high on its list of priorities, adding that memory chip companies would have to solve their financial problems by themselves.
No merger and acquisition deals or relief funds would be involved in the formation of the new company, Hsuan said.
Without support from the government, Powerchip will instead “speed up our consolidation efforts with Elpida,” spokesman Eric Tan (譚仲民) said on the phone.
“Creating TMC will not be of any help to the ailing DRAM industry. It is just another DRAM firm in competition with existing players,” Tan said.
Powerchip chairman Frank Huang (黃崇仁) told Unique Satellite TV (非凡電視) that domestic DRAM makers were struggling to survive the economic turndown because of oversupply and shrinking demand.
TMC would only exacerbate the situation and intensify competition, Huang said.
Huang was scheduled to meet high-ranking executives from Elpida next week for detailed discussions about a consolidation plan drafted earlier, Tan said.
The companies may retain the original consolidation plan, seeking to integrate some domestic DRAM makers into their joint venture, Rexchip Electronics Inc (瑞晶電子) in Taichung, which makes chips at cost-efficient 12-inch fabs with Elpida’s technology, Tan said.
Powerchip and Elpida submitted the consolidation and bailout plan to the Ministry of Economic Affairs in late December, but the plan was rejected.
Shares of the nation’s top three DRAM makers, Powerchip, Nanya Technology Corp (南亞科技) and ProMOS Technologies Inc (茂德科技), yesterday fell 6.4 percent, 2.3 percent and 6.3 percent to NT$3.33, NT$5.82 and NT$1.04, respectively.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Pegatron Corp (和碩), an iPhone assembler for Apple Inc, is to spend NT$5.64 billion (US$186.82 million) to acquire HTC Corp’s (宏達電) factories in Taoyuan and invest NT$578.57 million in its India subsidiary to expand manufacturing capacity, after its board approved the plans on Wednesday. The Taoyuan factories would expand production of consumer electronics, and communication and computing devices, while the India investment would boost production of communications devices and possibly automotive electronics later, a Pegatron official told the Taipei Times by telephone yesterday. Pegatron expects to complete the Taoyuan factory transaction in the third quarter, said the official, who declined to be
RSS