Saturday, May 30, 2009
Taiwan Memory's waiting game
There is now a lot of speculation that Taiwan Memory is simply going to wait out the Taiwanese DRAM companies and buy up some of their assets on the cheap when they fold. If Taiwan Memory actually follows through this strategy, it could turn out to be a smart business move as well as a face-saving gesture for a company (to use that term loosely for this state-organized entity) so rudely rebuffed by Taiwan's DRAM makers when it offered to save them through M&A. Promos and Powerchip are particularly ripe for picking. Still, TM would have to gather most of Taiwan's DRAM capacity to really make a go of it, and Nanya is likely to continue to hold out with the help of the surprisingly resilient Micron, which has surpassed Elpida for third spot in the global DRAM rankings as of Q1 of this year.