TOKYO, April 15 (Reuters) – Japan has told Taiwan it is preparing to use public funds to boost the capital of chipmaker Elpida Memory (6665.T), which is teaming up with Taiwanese makers to fight slumping demand, Japanese public broadcaster NHK reported on Wednesday.
The Ministry of Economy, Trade and Industry told Taiwanese authorities on Tuesday that a plan is under way for the use of public funds to boost Elpida’s capital once Japan’s parliament passes in the current session a new public fund scheme for ailing companies, the NHK said.
On April 1, Taiwan Memory, which was recently set up by the Taiwanese government to rescue Taiwan’s chip sector from the severe market downturn, chose Elpida as a partner to develop new chips [ID:nTP104915].
Elpida, the world’s third-biggest maker of dynamic random access memory (DRAM) chips, said on the following day that it was open to the idea of Taiwan Memory taking a stake of about 10 percent in Elpida [ID:nT340950]. (Reporting by Yumiko Nishitani)