Elpida Puts TIMC Deal on Hold

Taipei, March 4, 2010 (CENS)--Yuki Sakamoto, president and chief executive officer (CEO) of Elpida Memory Inc. of Japan, yesterday said his company has decided to shelve a plan to invite Taiwan Innovation Memory Co. (TIMC) to invest in his company for a 10% stake.

The top Elpida executive said his company made the decision out of concern that Taiwan's Legislative Yuan disapproved the government's plan to put money into TIMC. He added that the legislature's decision would hamper TIMC from acquiring enough money for the investment, which was originally set at NT$20 billion (US$625 million).

The Ministry of Economic Affairs (MOEA) yesterday invited top executives of Taiwan's DRAM chipmakers to take part in a meeting, which was reportedly held to address the suspension of Elpida-TIMC deal.

President of Nanya Technology Corp., Jih Lien, said before attending the meeting that his company now does not need government funding and will be able to emerge unscathed even in next recession with strong financial backup from parent company Formosa Plastics Group.

Frank Huang, chairman of PowerChip Semiconductor Corp. (PSC), said Elpida is much concerned about Taiwan government's investment in TIMC because without government capital TIMC would become a failure. Elpida is PSC's long-term alliance.