Home > Digitimes, DRAM, DRAMeXchange, Fabtech, Germany, Hynix, iSuppli, Korea, memory market, Powerchip, Qimonda, Taiwan > DRAM makers being offered lifelines via bail out plans!

DRAM makers being offered lifelines via bail out plans!

December 24, 2008

Browsing the Web these past days has brought me to various stories, mostly discussing the various bail out plans being provided for some leading DRAM makers.

It all started with Germany based Qimonda announcing that it has arranged a Euro 325 million financing package for the ramp up of its innovative Buried Wordline technology.

Yesterday, Hynix, the Korean DRAM maker, received a bail out of $597 million, according to reports on Fabtech. The story also reports that Powerchip Semiconductor, Taiwan’s largest DRAM maker, is also seeking new funding.

Then, DigiTimes, a very good technology news Web site from Taiwan, reported yesterday that Taiwan’s Ministry of Economic Affairs (MoEA) had reportedly developed an NT$200 billion (US $6.5 billion) bail out plan for Taiwan’s hard-hit DRAM makers.

Sitting in India makes it a little difficult to speak with global companies based in Taiwan, Korea and Germany. I sometimes wish I could get some help from reliable sources as to what’s the actual ground situation.

Having said that, it is good to see various national governments showing their deep concern about the state of the global DRAM industry and about technologies. And, let us keep all criticisms aside, as to who performed and who didn’t! Here’s a lesson for India to learn from, as closer home, it has a semiconductor industry really in its infancy!

Right now, the global semiconductor industry is facing a downturn and memory is the hardest hit! Hence, if any measures are being taken to somehow bring DRAM back on track, it should be welcomed.

Qimonda, Hynix, Powerchip, etc., are not small names in the global industry. Poor performance from memory players saw them dropping out of the top 20 global semiconductor players’ rankings in 2008.

All the lifelines being provided to these major players now means that these companies need to pull it off, somehow, and extricate themselves from the depths they have fallen into. If they fail, they will perish! And, they all know that!!

I’d be very keen to see the responses of DRAMeXchange and iSuppli on these bail out plans.

Merry X’mas everyone, and hope you all have a great time!

PS: I have iSuppli’s feedback!

Speaking on the Taiwan government’s bail-out plan as well as Hynix’s rescue package from banks, John Lei, Analyst, memory, iSuppli Corp., said: “In general, Hynix’s package is much like a short-term relief for their near-term debt, while the Taiwan government aims at the possible consolidation of five suppliers.”

“All these packages could bring more uncertainties to the maket, however, based on iSuppli’s assumption and forecasts. The industry operation profit margin will hit bottom in Q4-08, but profitability of the industry will not occur until Q4-09,” he added.

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