Kingston co-founder David Sun claims that unless Taiwan DRAM manufacturers implement steps to increase their efficiency, such as consolidation or mergers to produce larger companies, they will not remain competitive in the DRAM industry in the long term.

According to David Sun, a more consolidated view is the correct way to approach long-term sustainability for Taiwan DRAM manufacturers. The Taiwan government attempted to implement this itself with the TIMC project, but the effort appears to have failed, Sun notes.

Sun blames the Taiwan government for the fall-through, claiming that since DRAM manufacturing represents a large portion of Taiwan’s economy, the Taiwanese government should have taken a much more active role in the attempt to establish TIMC.

With the price of DRAM modules beginning to fall, market analysts believe that the window to restructure Taiwan’s DRAM industry has passed. After lawmakers rejected the government funding project, Taiwan’s Ministry of Economic Affairs also suspended the processing of applications for government funding from DRAM companies.

With the Taiwan DRAM industry entering a crunch, DRAM prices should continue to fall as Korean DRAM manufacturers relax their grip on RAM prices.

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