Taiwan merges DRAM suppliers into single company

The government of Taiwan has announced plans to merge its country's embattled DRAM chip suppliers into a single company.

Taiwan's Ministry of Economic Affairs has negotiated a deal to bring six domestic firms into a single entity known as the Taiwan Memory Company (TMC).

Under the plan, the Taiwan government will take a stake in the new company of less than 50 per cent, keeping TMC from being a state-run business.

Before the takeover can begin, however, Taiwan is hoping to strike an alliance with a foreign chipmaker for intellectual property and manufacturing technology.

The candidates have been narrowed to Japanese firm Elpida, and US chipmaker Micron, which closed a manufacturing facility in Idaho last year.

Leading the efforts to select a partner and start the new company will be John Hsuan, vice chairman of United Microelectronics Corporation.

Hsuan will be tasked with striking a deal with either Micron or Elpida, overseeing the formation of TMC and acquiring new intellectual property to help push manufacturing forward.

The company hopes to negotiate the deal within three months, and begin officially operating under the TMC banner within the next six months.