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"Taiwan will set up a new company to pull together its struggling computer memory chip makers and bring in technology from the Japanese company Elpida or the U.S. company Micron Technology to overhaul a sector suffering from its worst slump ever.
Taiwan's government has tried to orchestrate a restructuring of the domestic dynamic random access memory, or DRAM, sector to put it on a better long-term footing, as local players have posted heavy losses in the past several quarters because of oversupply.
Taiwan makes nearly a quarter of all of the DRAM chips in the world, which are mostly used in personal computers and other electronic goods.
Since late December, the top three DRAM makers in Taiwan - Powerchip, Nanya Technology and ProMOS - have been working with the government on restructuring plans that could have them team up with their foreign partners, Elpida and Micron.
Taiwan Memory Co., the new company, would combine research, production and brand marketing, allowing it to be better placed to compete with the top two global players, Samsung Electronics and Hynix Semiconductor."
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