Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Monday 24 November 2008]
David Sun, co-founder of Kingston Technology, recently stated that Taiwan's DRAM makers should be aware that now is the best time for Taiwan's DRAM industry to implement consolidation or vertical integration strategies. The later a response to the industry downturn is carried out, the harder is will be for DRAM makers to recover, Sun commented.
As Taiwan is a fundamentally important part of the global PC supply chain, local DRAM makers should take appropriate measures towards consolidation and improved vertical integration, said Sun. A seamless integration of the local semiconductor supply chain should be implemented according to the interests of Taiwan and its people, Sun noted.
Despite the severe industry slump, Sun does not expect to see any of the existing local DRAM players close down their operations. Any shutdown may lead to a domino effect and consequently cause the collapse of the country's entire financial system, Sun warned. Thus, local DRAM makers and related enterprises should grab this opportunity to work together, acting immediately to ensure a healthy recovery, Sun suggested.
The ideal number of DRAM makers in Taiwan could be two, said Sun, explaining that technological development and cost reductions can be stimulated efficiently and progressively between two parties. Fewer participants with larger production and operating scales could be more competitive than several smaller players during the current economic uncertainties, Sun stated. |
