Forum Views ()
Forum Replies ()
Read more with google mobile :
State aid seen prolonging chip industry's woes
| Technology
|
My Profile
Holiday Gift Guide
Gift ideas & reviews for this holiday season
Start Browsing
You are here:
Home
>
News
>
Technology
>
Article
Home
Business & Finance
News
U.S.
Politics
International
Technology
Internet
Holiday Gift Guide
Entertainment
Sports
Lifestyle
Oddly Enough
Environment
Health
Science
Special Coverage
Video
Pictures
You Witness
The Great Debate
Blogs
Weather
Reader Feedback
Do More With Reuters
RSS
Widgets
Mobile
Podcasts
Newsletters
You Witness News
Make Reuters My Homepage
Partner Services
CareerBuilder
Affiliate Network
Professional Products
Support (Customer Zone)
Reuters Media
Financial Products
About Thomson Reuters
State aid seen prolonging chip industry's woes
Tue Dec 16, 2008 12:15pm EST
Email | Print |
Share
| Reprints | Single Page
[-]
Text
[+]
By Georgina Prodhan
LONDON (Reuters) - Governments in Taiwan and the German state of Saxony stepped in to help struggling chipmakers on Tuesday but such moves are more likely to prolong the industry's misery than to provide meaningful job security.
Prices for memory chips, used mainly in personal computers and consumer electronics, have slumped to all-time lows as supply outstrips demand, helping cash-strapped gadget makers push prices ever downwards.
Research firm Gartner slashed its forecast for 2009 semiconductor revenue to $219.2 billion on Tuesday, a drop of 16.3 percent, compared with a forecast of a 2.2 percent decline it gave just a month ago.
Japan's Toshiba and U.S. partner SanDisk Corp said earlier they would cut production of NAND flash memory chips used in digital cameras and MP3 music players by 30 percent next year in response to a slowdown in consumer demand.
Many semiconductor makers, particularly makers of DRAM memory chips used in PCs, expanded production aggressively over the past few years, hoping to gain market share even at the expense of frequent financial losses in the cyclical industry.
This year, many have begun to cut back -- partly to address the oversupply situation and partly for lack of funds to invest -- but any positive effects that might have been felt were negated by an economic downturn that led consumers to curtail spending.
The process of cutting production is painful but necessary, says Gartner research vice president Andrew Norwood.
"Only widespread government support for the ailing DRAM vendors could avert this supply rationalization, and that would be a disaster for the industry as it would just prolong the current downturn," he told Reuters.
JOB FEARS
The eastern German state of Saxony, nicknamed "Silicon Saxony" for its encouragement of technology companies such as AMD and Infineon to invest there, offered a partial bail-out to German memory chipmaker Qimonda on Tuesday.
Qimonda, spun off from Infineon two years ago, employs about 3,200 staff at a factory in the state capital, Dresden. The company warned this month it faced a cash crunch by early next year if it did not find a new investor.
Saxony offered to lend Qimonda 150 million euros on condition that Infineon do the same. Infineon did not immediately respond.
Earlier, Taiwan's Economics Ministry said it would support its struggling local DRAM industry by helping it to develop more local technology and said it could provide aid to local players who are posting major losses.
The island's third-biggest DRAM maker, ProMOS, has asked for government assistance, and local newspapers reported that U.S. memory chipmaker Micron planned talks with government officials about a possible tie-up with ProMOS.
Both governments and the semiconductor industry are alarmed about the scale of job losses that may occur if chipmakers fold. Industry organization SEMI warned last week that half a million jobs were at risk in Europe. Continued...
View article on single page
Share:
Del.icio.us
Digg
Mixx
My Web
Facebook
LinkedIn
Next Article:
Apple U.S. Mac sales flat in November
the great debate
Cleantech stock implosion yields gems
Cleantech, with its intoxicating mix of high-tech promise and save-the-world bloody-mindedness, has fallen harder and faster in the destruction that has visited growth stocks in 2008. Commentary
Related News
ASML may be losing its recession proofing
11:57am EST
Editor's Choice
Slideshow
A selection of our best photos from the past 24 hours. Slideshow
Most Popular on Reuters
Articles
Video
Recommended
Arena Football to cancel 2009 season-reports
Ancient armored amphibian had world's oddest bite
Downturn spurs "survival panic" for some | Video
What's next for America?
Fed cuts rates to record low | Video
Mexico opens help line for migrants to Arizona
Madoff tries to stay out of jail as probe widens
RPT-Charities hit hard as Madoff losses mount
Nude Virgin Mary cover prompts Playboy apology
Madoff case fuels attacks on SEC | Video
Most Popular Articles RSS Feed
Video
Bush ducks flying shoes
UK Brown in Mumbai peace bid
Talk of the Town:Madonna settlement
Bush's 'Iraqi kiss'
Madoff's alleged scam victims
Giant sandwich attempt
The Madoff scandal
Captive doctor arrives in UK
The Madoff scandal
Obama names energy team
Most Popular Videos RSS Feed
Holiday Gift Guide
Gift ideas & reviews for this holiday season. Full Coverage
Reuters Deals
The global destination for corporate leaders, deal-makers and innovators
Knowledge to Act
Reuters.com:
Help and Contact Us |
Advertise With Us |
Mobile |
Newsletters |
RSS |
Interactive TV |
Labs |
Reuters in Second Life |
Archive |
Site Index |
Video Index
Thomson Reuters Corporate:
Copyright |
Disclaimer |
Privacy |
Professional Products |
Professional Products Support |
About Thomson Reuters |
Careers
International Editions:
Africa |
Arabic |
Argentina |
Brazil |
Canada |
China |
France |
Germany |
India |
Italy |
Japan |
Latin America |
Mexico |
Russia |
Spain |
United Kingdom |
United States
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Wednesday, 17 December 2008
Toyota to negotiate lower steel prices: report
Sri Lanka says 145 killed in northern fighting
Holiday season in crisis as Thai tourism plummets
ICA foils contraband cigarette smuggling, 3 arrested
Angola president arrives in China in search of investment
Morning isn't enough for NBC's `Today' show
Poetry organization receives $2 million grant
MDA offers grants to develop games for Xbox LIVE
Indonesia scraps plans to tag HIV patients
US worried about need for warrants in Iraq
Abbas says he'll call Palestinian vote `very soon'
Australia OKs Facebook for serving lien notice
Minorities protest restrictions on suspect charity
Kerry says Pakistan 'sincere' in Mumbai crackdown
Document: Actor Peter Falk has Alzheimer's
Clooney, Hanks urge against Hollywood actors strike
AP NewsAlert
China defends censoring websites that break rules
Fox orders musical scripted series
Santa village in Finnish Arctic awaits crisis crunch -- next year
Aretha Franklin among headliners at 2009 Jazz Fest
Argentine courts seize Iran diplomat's property
US: Afghan supply line fine, but drivers cite risk
One of world’s fastest off—track car, Ariel Atom, to be sold in Singapore
Berlin Film Festival to honour Doctor Zhivago composer
`Twilight' sequel speeds ahead for November 2009
Future looks rose for US wine in Britain
Israeli-Palestinian peace process is irreversible
Bangladesh lifts state of emergency after 23 months
For some Chinese, growth may not equal happiness
Semiconductor revenue to fall again next year: Gartner
Aretha Franklin to take stage at 2009 Jazz Fest
HBO, Winfrey's production company reaches deal
Airline offers 100,000 free tickets to Thailand
Ding's maximum joy fades as O'Sullivan exits
Disney-branded channel coming to Russia
BBC complains of Chinese censorship
In US first, Detroit papers to cut back on home delivery
Microsoft releasing emergency patch for perilous IE flaw
Aretha Franklin talks about new Xmas CD
Pellicano: No apologies to those he spied on
Ebert gets life membership from Directors Guild
At least 26 die as Israeli bus tumbles into ravine
Iraqi doctor found guilty of failed London, Glasgow attacks
PartyGaming founder pleads guilty, to forfeit 300 mln dlrs
Some 30 Russian tourists die in Israel bus crash
| International
|
European new car sales 'plunge 25.8%'
'Dark energy' expands, contracts universe: researchers
Greek PM vows to fight corruption after 11-day protest
| International
|
Dynamite found in Paris department store
OPEC readies cut of two million barrels a day: ministers
U.N. council allows Somali anti-piracy fight on land
| International
|
Fed cuts rate to virtually zero, will expand stimulus moves
Bush says seeking prompt action on auto industry
Emerging SE Asia haunted by culture of corruption
| International
|
White House says 'concessions' needed for auto bailout
Iraqi who threw shoes at Bush admits it in court
| International
|
Pressure mounts on US regulators over Madoff pyramid scam
Germany seeking US global warming cooperation
Iranians hit by Dubai property slide
| International
|
Goldman reports $2.12 bln loss
Mexico: So far, no exodus from US to Mexico
Rwanda denies U.N. panel charge it aids Congo rebels
| International
|
Launch of ruling ANC dissident party shakes up SAfrican politics
US gives Nicaragua 90 days to clear election concerns
Korea Hot Stocks-Ssangyong Motor down on production halt
Pakistan sees need for crackdown after Mumbai
| International
|
US: Nicaragua could lose aid over election dispute
Germany seeking US global warming cooperation
Tokyo shares open higher after US rate cut
Russian warships causing no ripples in Pentagon
S.Korea T-bond futures soar after heavy U.S. rate cut
Jobs won't deliver Macworld keynote
| Technology
|
South Korean won jumps over 3 pct vs dollar
Mobile phone market to shrink in 2009
| Technology
|
Seoul shares rise after U.S. rate cut; banks,techs
Top UN official goes missing in Niger
South Korea says no risk of local mortgage crisis
Wireless companies warn of U.S. inauguration delays
| Technology
|
Sony, Fox Sports offer 3-D college football event
| Technology
|
China regrets WTO decision on auto parts
OPEC readies cut of two million barrels a day: ministers
U.S. cable companies giving free equipment for digital move
| Technology
|
Indonesia passes new mining law
Expectations of 2 million barrel OPEC oil cut grow
Michael W. Smith, others lend voices to charity
Oil prices sink on Saudi talk of production cut
State aid seen prolonging chip industry's woes
| Technology
|
OPEC cuts demand projection for 2009
Dennis Quaid settles with hospital on twins overdose
| Entertainment
|
American Idol is most time-shifted show: Nielsen
| Entertainment
|
Pellicano: No apologies to those he spied on
Hit film Twilight sequel will be harder, say stars
| Entertainment
|
Berlin Film Festival to honour Doctor Zhivago composer
Disney to launch free TV channel in Russia
| Entertainment
|
Oscar-winning Crash finds new life on TV
| Entertainment
|
Peter Falk suffers from Alzheimer's, daughter says
| Entertainment
|
Football tops ratings for NBC; CBS dominant
Mannish Boys lead nominees for blues awards
Will.i.am to perform on Dick Clark New Year's Eve
1 dead, 19 rescued as vessel sinks in Philippines
Marilyn Monroe pics sold for nearly $150,000
Bollywood's boys bulk up, add brawn to brooding
Minorities protest restrictions on suspect charity
Merger plan proposed for stricken LA museum
Australia strengthens sanctions against Zimbabwe
China defends right to censor Web sites
Lynne Cheney plans James Madison biography
Binge drinking an "emerging issue in S’pore", says HPB
UN empowers land operations against Somali pirates
Philippine rescue ship in distress, contact lost
Crackdown hampers earthquake relief in Pakistan
HDB brings forward some projects to help smaller contractors
Steve Jobs leaving MacWorld stage as Apple bows out
NKorea's Kim makes latest public appearances
Bangladesh lifts state of emergency ahead of vote
NKorea tightens its economic grip, restricts market trading
Toilet troubles in Japan as maker issues warning
CORRECTED
NKorea officials inspect Kaesong estate after border curbs
Arabs want meetings on Iran's nuclear program
New Thai PM promises 'competent' cabinet
China to send pandas to Taiwan on Dec. 23
SKorean actress who challenged adultery law gets suspended term
Fake Qantas engineer jailed
US to deploy stealth fighters to Japan
Senior NKorean official inspects industrial park
Indian parliament debates tougher anti-terror laws
Israel's Peres voices grief over bus crash to Medvedev: Kremlin
Time is on my side? Rolling Stones' Richards turns 65
Fed cuts rates, Asian markets' limited gains
Iraqi doctor faces life for failed London, Glasgow attacks
Taking a swipe at Bush: Zaidi-inspired shoe game on Internet
UN empowers land operations against Somali pirates
Nuclear engineer jailed over Iran software plot
US military deaths in Iraq war at 4,209
China says lending to US will not go on forever
US: 3 militants killed in raid in Afghanistan
Mexico says more US drug aid expected by January
S.Korea c.bank contributes $1.6 bln to bond fund
Excess semi inventories to surge end Q4 -iSuppli
South Korean Nov exports to China set record drop
Rebels claim to kill 130 Sri Lankan troops
Honda slashes profit forecast amid global downturn
Kidnapped Bangladeshi doctor says she was forced to marry
Nissan says cutting another 500 jobs
Aborigines win court fight against Swiss miner
Asian markets mildly higher after US rate cut
Singapore Nov exports slip, recession seen continuing
Pakistan stocks down despite fund talk; rupee firms
Oil prices rise to above $44 before OPEC meeting
Sydney court imprisons bogus aircraft engineer
Seoul shares gain after volatile trade; autos fall
OPEC to slash oil output, Russia may contribute
Taiwan's short-term rates higher than in U.S. -c.bank
Oil rises to above $44 before OPEC meeting
HK central bank cuts key rate after Fed's action
Hollywood reels under strike, nervously braces for sequel
Pianist Alfred Brendel takes final bow from concert stage
Hollywood reels under strike, nervously braces for sequel
Australian pet ambulance finds a growing niche
HIV/AIDS "hidden but growing" problem in the Philippines
New Thai PM to tackle economy
Sri Lanka troops, Tigers trade fire after heavy fighting
Rebels claim to kill 130 Sri Lankan troops
Seoul hospital refuses to end coma patient's life
NKorea releases more Kim photos to dispel health rumours
Migrant workers face the squeeze amid financial crisis: ILO chief
Thailand's new PM vows competent cabinet
NKorea nuclear talks fruitful despite collapse: US envoy
Rock, pop and electro: a Top 10 for 2008
Malaysia PM: Final mission to cool racial tensions
Ben Affleck, Mick Jagger join forces to help Congo refugees
Chie Tanaka dreams to be a singer
Report: SKorean actress found guilty of adultery
Seoul hospital refuses 'Right to Die' request
Azamara Quest begins debut cruise season in Asia
Voters head to polls in Kashmir for state election
Death toll from capsized Philippine ferry hits 30: coastguard
Malaysia denies any plan to close Catholic paper
Miss Asia Pageant results refuted
Wax statue created for Lin Chi-ling
Assyakirin Mosque in Taman Jurong reaches out to workers
Joey Yung will feel guilty to clinch APAC popular female singer award
Investors of failed structured products to know outcome of complaints by mid—Jan
Members of Israel's ruling party vote in primary
Greece demonstrators call for Europe-wide protest
| International
|
Rocket fire raises concern over Gaza truce
EU parliament approves climate change package
Britain's Brown in Iraq ahead of troop withdrawal
| International
|
Brother: Iraqi shoe-tosser seen by judge in jail
Iraqi doctor jailed for life for failed British bombings
Pirates seize four ships in Gulf of Aden
| International
|
Britain to pull troops from Iraq by May 31
Germany to take on at least 30 bln euros in debt: report
Iraqi jailed for car bomb plots in London and Glasgow
| International
|
North Korea presents more evidence of recovered Kim
| International
|
Brown visits Iraq, says mission to end mid-2009
Southern Africa launches urgent aid for Zimbabwe
| International
|
Britain to end Iraq mission first half 2009: statement
Islamists not main suspects in Paris probe: minister
| International
|
Unemployed masses worry stability-obsessed China
| International
|
Cambodia kills 320 fowl after bird flu outbreak
EU parliament approves climate change package
Arrested mob boss hangs himself in Italian jail
| International
|
Bush shoe-thrower brought before Iraqi judge
Residents vote in 6th round of Indian Kashmir poll
EU Parliament ratifies climate change plans
Two 'terrorists' sentenced to death for China attacks
30 years transform China, but not its politics
Lawyers turn to Facebook to serve legal papers
| Technology
|
Yahoo lowers data retention to three months
| Technology
|
Chinese sailors fend off Somali pirates, UN okays land ops
New PM vows to fix "failed" Thai politics
Iraq shoe-thrower inspires Bush-bashing Web games
| Technology
|
S$50m in Medifund given out to needy patients in 2007
New Thai PM to tackle economy
Philippine court convicts 4 Muslim militants
Asian stocks rise cautiously on US rate cut
Sprint unveils dual-mode modem for WiMax
| Technology
|
HK index up 2.2 percent on Fed's rate cut
China sentences 2 to death for attack in Xinjiang
Baucus urges Hanoi to lift restrictions on US beef
OPEC likely to OK 2 million barrel oil output cut
Singapore to sign MOU with World Bank group
Pakistan's 6-mth T-bill cut-off yield flat
WRAPUP 1-Azerbaijan, not Russia, offers OPEC oil cut
Madonna, Ritchie say divorce sums wrongly issued
| Entertainment
|
Honda slashes profit forecast amid global downturn
Oil rises above $45 before OPEC meeting
Oprah Winfrey makes TV movie deal with HBO
| Entertainment
|
South Korea's wobbly won shows signs of stability
OPEC agrees to record cut in oil output: Saudi minister
Directors Guild to honor Roger Ebert
| Entertainment
|
OPEC prepares record cut in oil output
CBS shows dominate weeklong ratings
| Entertainment
|
OPEC is on the edge of making record cut in oil output
Azerbaijan offers OPEC oil output cut of 300,000bpd
Dexter finale a boost for Showtime
| Entertainment
|
NBC giving Today a special primetime slot
| Entertainment
|
Ben Affleck, Mick Jagger join forces to help Congo refugees
Wanted by MTV: Adventure capitalists
| Entertainment
|
MSNBC promotes pimped out anchor
| Entertainment
|
Adapted screenplays confront dreaded voice-over
| Entertainment
|
Carrie Underwood to sing at People's Choice Awards
Pakistan: Children protest UN action on charity
S'pore's Great Eastern reports $44mln exposure to Madoff
Xinhua Finance to close financial news service
COE prices down across all categories, biggest drop in big car category
Doctor censured, fined for professional misconduct, gross negligence