Despite government bailouts of memory-chip makers, the market looks right for some kind of consolidation, says Micron Technology CEO Steve Appleton.
Government bailouts won't stop discussions, says Steve Appleton
Over production and prices declines have shaken the financial foundations of many of the companies, even as personal computers and cell phones soak up ever more DRAM and NAND flash memory capacity.
“I think in fact some of the bailouts are occurring just so that we can get to a consolidation,” Appleton said Wednesday on a conference call with analysts. “Otherwise the companies would be filing bankruptcy right now.”
Already, governments in China and Germany have offered support to producers Semiconductor Manufacturing International and Qimonda.
Korean authorities are anticipated to be the next to step up with money for Hynix, while in Taiwan, five memory chip makers are pleading with the state for help there.
Appleton said he expects discussions about potential consolidation will continue. Bailouts won’t sideline them.
