DRAM Maker ProMOS Seeks Government Bailout

Paul_Lilly

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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