DRAM Maker ProMOS Seeks Government Bailout
DRAM Maker ProMOS Seeks Government Bailout
Posted 11/19/2008 at 11:45am
| by Paul Lilly
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The DRAM industry is facing its toughest time in the past 15 years with not much of a light at the end of the tunnel. Most memory companies have already reduced production and scaled back the workforce, but it has done little to change the fact that DRAM prices have already dropped close to cost. Could a government bailout be the answer?
That's exactly what ProMOS chairman ML Chen wants to see happen. Chen, whose company has already suffered losses adding up to US$675 million in the first three quarters of 2008, is calling for the Taiwan government to keep the industry afloat. Total losses for the entire industry currently sit at US$2.73 billion, a number which is expected to grow in the fourth quarter.
Chen, who said it would be a pity of the government gave up on DRAM makers who have given so much to the nation's semiconductor industry, would like to see some fundamental changes occur, like the development of home-grown technologies. Chen also said that the government should offer aid programs and restricted bank loans, which could only be used for technological research and development and not for capacity expansion.
Should the Taiwan government step in? Hit the jump and post your thoughts.
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Mighty BOB!
November 22, 2008 at 3:13pm
Sigh.. bail out one institution and it opens the floodgates for more bailout requests...
Keith E. Whisman
November 20, 2008 at 12:40am
We have our third kid a boy due to be born anyday now... I'm not making enough money to make ends meet.. Hey government I need a bail out too.
smashingpumpin
January 04, 2009 at 4:53am
Finally! A contender to Netbook on post election lol. Got tired of hearing Pres/VPs, Netbooks and now this?! Bailout FTW? We will see...
___________________________
...and what does this have to do with porn?
Sonickid101
November 19, 2008 at 9:12pm
Why would you Capitolize the profits of a company and socialize thier debt. If they turned a profit a company would not share it amongst the people of the country they're in. So why then should the country have to socialize thier debts amongst the citizen taxpayers of that country this is universal in all capitalist countries america is making the same mistakes here. People will make new companies different than the Fords and GM's we have today why not let them die and see what happens?
chris.peplin
November 19, 2008 at 12:40pm
It's no more absurd than the American automaker's bailout plea - this is a huge industry in Taiwan.
hades_2100
November 19, 2008 at 12:29pm
[quote]these companies(including american companies) should be doing what is
necessary.......LOWERING PRICES. which will create a frenzy, which will
raise prices in the long run.[/quote]What part of "prices have already dropped close to cost" was misleading? How much further should they drop prices?
xs0u1x
November 19, 2008 at 2:38pm
i highly doubt ram prices are close to cost of manufacture in taiwan, where they pay their workers a pitiful salary, and get the mats cheaper and cheaper. again this is hypocritical, people want a free market, and when they start losing they go crying wanting a bail out.
my point being, you win some and you lose some, and just because profits are down shouldnt mean you go crying just because you arent makeing as much as you used too. thats like saying "i was making 8billion last year....why cant i be makeing 8billion again....GIVE ME 8 BILLION"
Talcum X
November 19, 2008 at 12:03pm
Didnt they hear? It's all the rage now. Government steps in and bails out big biz... We started a trend that has expanded over the pond. Get on the badwagon and join the parade.
***********
Every morning is the dawn of a new error.
"In Ireland, there are more drunks per capita than people." - Peter Griffin
jwalch.hawk
November 19, 2008 at 4:19pm
I was going to write something like this but read the comments and found it already well-put.
Consider this sentiment seconded. ^^^
xs0u1x
November 19, 2008 at 12:02pm
these companies(including american companies) should be doing what is necessary.......LOWERING PRICES. which will create a frenzy, which will raise prices in the long run.
i think im gonna start a business.....its nice to be able to demand what kind of profit you want.
PCIV
November 19, 2008 at 1:36pm
RAM costs next to nothing these days. I'm not suprised if they're selling near or at cost. If you start a business, you wouldn't sell something you make for 6 dollars for 5, and hope it drives demand. It might, but you'll be broke by then.
nekollx
November 19, 2008 at 12:14pm
Hi im a comic/book publishers 100% amrican made, can izzz get freee monies?
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