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Taiwanese DRAM makers to get $6.5 billion bailout?

Posted on Tuesday, December 23 2008 @ 17:39:11 CET by

DigiTimes reports the Taiwanese Ministry of Economic Affairs (MOEA) is planning to give the island's fragile DRAM industry a NT$200 billion (US$6.5 billion) rescue package:
Chii-Ming Yiin, Taiwan's minister of economic affairs, did not deny the speculated bailout amount. According to Yiin, any bailout measures for local DRAM makers are subject to risks, costs and benefits on their impact on economic growth and they will be carefully evaluated. Yiin believed that the bailout applicants were not just looking for cash injections, but mainly requested that the government negotiate with local banks and help sort out their debt problems and schedules.

Some legislators commented that the NT$200 billion bailout draft should be examined carefully before being implemented. Those commenting appeared to be opposed to the DRAM rescue plan, as they expect companies to commit themselves to changing economic conditions. In addition, legislators voiced concerns that the government's intervention in failing enterprises goes against the market mechanism.



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