Minister of Economic Affairs Shih Yen- hsiang said yesterday that although the global DRAM market is picking up, the government still plans to invest NT$8.1 billion in a state-backed chipmaker to help restructure the DRAM industry. The legislature earlier this month rejected a request by the economics ministry for the National Development Fund to invest in Taiwan Innovation Memory Co.(TIMC).However, in a report to the legislature Monday, Shih appealed for a revival of the plan, saying it would be difficult for local DRAM companies to keep paying high technology licensing fees unless the industry can obtain vital technology through TIMC.
According to the report prepared by the economic ministry, the TIMC funding project will be carried out in two phases. In the first phase, investments will total NT$11 billion, with the government putting in NT$4.9 billion, Shih said. In the second phase, NT$7 billion will be required and the government's input will be NT$3.2 billion, he added.
The government would have the option of buying fewer shares in the second phase if it wants to cut back on its stake in the company, he said.
The Ministry of Economic Affairs (MOEA) also said it plans to list TIMC in Taiwan and on overseas stock exchanges, once the company meets all operational and profit criteria for stock listing.
Shih pointed that while the DRAM industry is a key pillar of the country's semiconductor industry, the total liabilities of local DRAM companies amounted to NT$420 billion, with NT$270 billion in bank loans.
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