Taiwan Development Will Seek Private Funding for TIMC

(Reuters) – Taiwan’s economic minister said the National Development Fund has decided not to inject funds into a newly established PC chip company, which will instead seek funding from the private sector.

In late December, the Economics Ministry said it may consider seeking more private funds for the chip company if parliament blocked injections of state capital. [ID:nTOE5BS055]

“Since the National Development Fund has decided not to invest, they have to look for capital from the private sector,” Economics Minister Shih Yen-shiang told reporters on Thursday.

As part of efforts to restructure the island’s chip industry, the Economics Ministry gave in-principle approval in November to Taiwan Innovation Memory Co’s (TIMC) request for about T$5 billion ($156 million) from the government.

However, a parliamentary economic committee called on the National Development Fund not to inject capital into TIMC, pushing for the project to be scrapped on concern it would waste state funds.

Critics say the new DRAM company has proceeded at a snail’s pace since its formation in March 2009, and that the timing for restructuring Taiwan’s DRAM sector has passed as some chipmakers are returning to profit as chip prices recover. (US$1=T$32)