Taiwan-based dynamic random access memory (DRAM) maker PowerChip Semiconductor Corp. on Friday officially submitted its restructuring plan to the Taiwanese government in a bid to receive state aid. The move happens just a week after the authorities formally proposed state bailout to the local DRAM industry.

A news-story by Reuters web-site claims that PSC wants to get NT$20 billion ($605.4 million) from the state in order to keep its business running. Other details are unknown. Earlier PowerChip Semiconductor reportedly confirmed intention to cooperate with its Japanese partner Elpida in presenting a concrete survival plan by year end.

According to some estimates, Taiwanese makers of memory have debts that amount NT$700 billion ($21.598 billion) amid global mainstream DRAM prices falling below their production costs in Taiwan.

The Taiwanese government has three major principles in dealing with the problem of the DRAM industry, including helping the industry establish its independent technology, helping it upgrade its international competitiveness, and assuring maximum efficiency of the investments. The deputy minister stressed that the government’s ultimate goal is to see the industry realize horizontal integration domestically and vertical integration internationally, following the strategy of “joint investment and joint R&D”, in the hope of facilitating the cooperation among Taiwan, the U.S., and Japan for the development of the industry.

Tags: Powerchip Semiconductor, Business