Premier Wu Pushes Integration of Japanese and Taiwanese DRAM Firms

Taipei, Nov. 10, 2011 (CENS)--Premier Wu Den-yih said yesterday (Nov. 9) that in response to the intention of some Japanese DRAM company to integrate with Taiwanese counterparts, he has instructed the Ministry of Economic Affairs to provide the necessary assistance to facilitate the effort.

We made the revelation when commenting on the plights of four Taiwanese hi-tech industries, including DRAM, FPD (flat panel display), LED (light emitting diode), and solar energy.

Wu pointed out that there are two major factors conducive to the cooperation between Taiwanese and Japanese DRAM makers. One is the high royalties borne by the Taiwanese DRAM makers and the other is the appreciation of the Japanese yen, plus the advantage of the cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA).

A certain Japanese DRAM firm with patent right has expressed willingness to integrate with Taiwanese DRAM firms, according to Wu. If the proposal is realized, Taiwanese DRAM makers, including Powerchip, Nanya Technology, Inotera, and ProMos, will no longer have to suffer over-supply and price competition and can avoid the need to pay excessive royalties.

Due to worse-than-expected demand from mainland China under the home appliances-to-rural areas policy, the Taiwanese FPD industry has suffered sluggish business but the situation is improving with the influx of more orders. Mainland China is reviewing its FPD industry policy, while Taiwan's two major FPD makers are in talk on how to integrate their operations.

The Premier pointed out that in September, the island's traffic signals were entirely changed to LED light entirely, following Singapore to become the second nation to do so worldwide. In the future, the government will further push the application of LED lighting gradually.

Wu noted that procurement price for photovoltaic power has dropped to NT$7.7 per kilowatt/hour, down from NT$12.9 originally. Germany pays much higher rate for such power, creating heavy financial burden.

In order to create a low-carbon green environment, the government will push the installation of 1,000 onshore and offshore wind turbines and 1 million rooftop solar-energy panels, according to Wu.