DRAM makers should consider uniting to tackle industry issues, according to CC Wu, chairman for Nanya Technology. Charles Kau, president of Inotera Memories, also echoed Wu's statement saying that consolidation at some point is inevitable in this challenging environment.
The remarks were made when the two Taiwan-based firms announced further quarterly losses. Both Nanya and Inotera have posted their eighth consecutive quarters of net losses.
Kau indicated that mergers could contribute to the industry's sustainable development, as fewer players would allow the industry to reach a balance between supply and demand.
In response to a potential merger with fellow companies, Kau declined to comment, but added that half of its board directors, who come from the Formosa Plastics Group, are not really involved in talks about possible integration with other firms.
Wu previously hinted that Nanya would not exclude the possibility of discussing with Japan's Elpida Memory and its existing partner Micron Technology about a potential tie-up. The remark was made in response to speculation that Elpida had been exploring various options including building some form of partnership with Micron and Nanya for restructuring its business.
In other news, Inotera has received a US$133 million loan from Micron Technology. The Taiwan-based DRAM maker also plans to issue up to 1.5 billion new shares and/or convertible bonds via a private placement, which will require the approval by a majority of Inotera shareholders, a vote will be held at a meeting scheduled for February 22.