2000/01/03
Tired of lagging behind the rest of the DRAM pack, Taiwan's memory makers hope to catch up to their rivals on the density front by making available limited supplies of 256-Mbit chips.
Three local DRAM manufacturers-Mosel-Vitelic Inc., Nanya Technology Corp., and Winbond Electronics Corp.-are developing their respective 256-Mbit parts, with volume shipments slated for mid-2000 or sooner.
The density advance could put Taiwan in a more competitive position within the worldwide DRAM industry, according to observers, who say that while the island is behind rivals in Europe, Japan, Korea, and the United States, it can no longer be labeled "trailing edge."
The technology buildup is a conscious one. In the past, Taiwan's DRAM makers mainly geared production toward second-tier memory-module suppliers. But consolidation and attrition within the module industry's bottom ranks has prompted Taiwan's DRAM vendors to move up the technology curve. This is catching the attention of first-tier OEMs scrambling to find supplies in the event of possible shortages this year.
In fact, sources said that several major OEMs, such as Compaq, Dell, Hewlett-Packard, and IBM, are evaluating DRAMs with an eye toward procuring parts from the island's suppliers in 2000.
"Most [tier-one OEMs] are engaged with a Taiwanese DRAM supplier right now," said Ken Hurley, president of Nanya Technology USA, the U.S. subsidiary of one of Taiwan's largest merchant memory-IC makers.
The additional business the PC industry may steer toward Taiwan's DRAM suppliers is made all the more possible by a recent U.S. International Trade Commission ruling that determined Taiwan's DRAM imports did not materially injure the U.S. memory-chip industry.
The dumping complaint, which had cast a dark cloud over the island's chip makers, carried with it the possibility of import duties. With the decision falling in Taiwan's favor, analysts are beginning to wonder if the island's vendors will fulfill an old promise to become a worldwide power in the DRAM industry. The island now is a minor player, making between 7% and 9% of the world's DRAM chips in 1998, according to IC Insights Inc., Scottsdale, Ariz.