Taiwan DRAM Industry in 2009

Under the impact of the 2008 financial tsunami, the Ministry of Economic Affairs, R.O.C., made a proposal to the Execution Yuan in March 2009 regarding the renovation plan of Taiwan DRAM industry. This plan was hopefully to establish Taiwan Memory Company (TMC) with private investors to renovate Taiwan DRAM industry. However, under media pressure, in July 2009, the original plan was altered to invite any DRAM company that wished to propose a renovation plan and needed government funding to file an application within three months. In August 2009, Taiwan Innovation Memory Company (TIMC) was officially established. This case aims to discuss the difficulties of Taiwan DRAM industry and the feasibility of the renovation plan through the establishment of TMC by its historical background and potential impacts. The key role of this case is Mr John Hsuan, CEO of TMC, and the decision-making focus is the Renovation Plan of Taiwan DRAM Industry under the charge of the Ministry of Economic Affairs. This covers the fourth quarter of 2008 to the first quarter of 2010.The purpose of the DRAM industry renovation plan was to sustain the technology and the industry, not any individual company. Therefore, the plan did not solve the financial problems of any DRAM companies. Can the DRAM industry renovation plan successfully turn Taiwan's DRAM industry around in a financial crisis and upgrade the competitive advantage of the nation?