Taiwan Memory peers at Japanese Elpida

Taipei, Taiwan – The company set up to rescue Taiwan’s local memory manufacturers is considering taking a 10 percent stake in Japanese firm Elpida.

Taiwan Memory could take as much as 10 percent of Elpida, according to a report in the Wall Street Journal. The newspaper, quoting the director general of Taiwan’s Industrial Development Bureau, is set to pick up the stake in July.

And Taiwan Memory will also take over one or more of the Taiwanese memory companies, with ProMOS a likely target. That’s one of the smallest of the Taiwanese memory firms,

DRAM companies have been hit by the double whammy of over production of chips and lack of demand because of the credit crunch. Many of them have cut production in a bid to stimulate prices but the malaise hit DRAM well before the credit crunch brought more gloom and doom to the DRAM industry.

Taiwan Memory was set up by the Taiwanese government earlier this year to bolster the local semiconductor industry – in particular the memory business. The WSJ article is here (sub required).