In the news

I'm always interested in seeing which T'aiwan 台灣 -related stories the Japanese media consider to be newsworthy. Lately, there have been a spate of reports on the efforts of Elpida Memory エルピーダメモリ to form partnerships with T'aiwanese chipmakers. From the Yomiuri Shimbun 読売新聞:

ELPIDA'S TAIWAN TARGET SEEKS DEBT FORGIVENESS

"Taiwan's ProMOS Technologies Inc., the world's seventh-largest dynamic random access memory (DRAM) maker, has asked Taiwan authorities and local banks to partially forgive its debt as the firm tries to finalize a business integration with Elpida Memory Inc., it has been learned. Elpida, the world's third-largest maker of DRAM chips, already has agreed with Taiwan's Powerchip Technology Corp. 力晶, the sixth biggest, to integrate their DRAM businesses. ProMOS has been negotiating with Taiwan authorities and the banks to improve its financial standing, a precondition for the firm to join the Elpida-Powerchip business integration. ProMOS has been suffering from a business slump and was carrying 73.7 billion Taiwan dollars (about 210 billion yen/$2.51 billion) in debt as of the end of September. Elpida has told ProMOS that debt forgiveness by the banks is a condition for joining the integration. ProMOS, Taiwan authorities and the banks likely will enter full-fledged negotiations on cutting its debt as early as the beginning of this week, sources close to the matter said. Initially, Elpida, Powerchip and ProMOS aimed to achieve a comprehensive business tie-up. However, Powerchip, which offers other products and services, is to spin off its DRAM business to integrate with Elpida."

Super Bowl Sunday

A fun weekend spent with my sister in Mukilteo, followed by a late afternoon/early evening of pizza-eating, beer-drinking (Samuel Adams Boston Lager) and Super Bowl-viewing - I am most definitely not looking forward to going back to That Island Which Shall Not Be Named (at least until the article copied below).

SHARP TIES UP WITH TAIWAN FIRM

Japan Times ジャパンタイムズ 

"ŌSAKA 大阪 (Kyōdō News 共同通信社) - Sharp Corp. シャープ株式会社 will tie up with Taiwan's 台灣 Chimei Innolux Corp. 群創光電 to mutually supply liquid crystal display panels for television sets starting this year, industry sources said Friday. The electronics maker is expected to provide Chimei with large LCD panels and technology for cutting the electric power consumption of LCD panels, while procuring inexpensive midsize panels from the major Taiwan LCD manufacturer, the sources said. In the LCD panel market, price competition has become increasingly fierce, with South Korean manufacturers, including Samsung Electronics Co., taking advantage of the weakening of the nation's currency to sell their products at lower prices outside the country. As the yen remains strong, Sharp is apparently aiming to strengthen its cost-competitiveness by cooperating with the Taiwan firm. Chimei Innolux is a group firm of Hon Hai Precision Industry Co., the world's largest make-to-order electronics manufacturer."

News that isn't going anywhere yet

The Kaminoge family had a pretty good afternoon exploring downtown Bremerton, and a write-up and photos will be posted in a couple weeks' time. Tomorrow, I'm planning on taking Amber on her first visit to a movie theater, to see Disney's "Tangled" (the only film playing around here that has a PG, and not PG-13, rating). On the newsfront, the story of cooperation between Japanese and Taiwanese chipmakers can still be found on the pages of Japan's English-language media, as this Yomiuri Shimbun 読売新聞 article (a follow-up from one in Sunday's edition) from the latest Daily Yomiuri shows:

JAPAN-TAIWAN TIE-UP READY TO FIGHT / CHIPMAKER PARTNERSHIP AIMS FOR SURVIVAL AGAINST SOUTH KOREAN GIANTS

"Leading Japanese chipmaker Elpida Memory Inc. エルピーダメモリ株式会社 has reached a broad agreement on production with a top Taiwan 台灣 manufacturer, a major step toward a Japan-Taiwan alliance to vie with the South Korean giants who dominate the field, it has been learned. Elpida's share of the global dynamic random access memory (DRAM) market stood at 16.1 percent and that of Taiwan's top chipmaker Powerchip Technology Corp. was 2.6 percent at the end of the 2010 July-September quarter. Through the agreement, Elpida will acquire the Taiwan maker's production operations, boosting its market share to 18.7 percent, third in the world after South Korean mammoths Samsung Electronics Co. and Hynix Semiconductor Inc. Dominating the world market, Samsung holds a 40.4 percent share and Hynix has 19.8 percent. Elpida - established in 1999 through a merger of the DRAM arms of Hitachi Ltd. 株式会社日立製作所 and NEC Corp. 日本電気株式会社, and later joined by that of Mitsubishi Electric Corp. 三菱電機株式会社 - opted for an acquisition as the company thinks expanding scale is needed to compete with the two South Korean DRAM giants, company officials said. Elpida also plans to bolster ties with Taiwan second largest DRAM maker ProMOS Technologies Inc. to strengthen the Japan-Taiwan alliance in chip development, production and marketing, they said.

Under the deal, Elpida will purchase all Powerchip-produced DRAMs, which will be sold to electronics manufacturers under the Elpida brand. The Japanese firm also will consult with Powerchip over possibly taking over its factories. The broad agreement, made during talks between top executives last weekend, also states Elpida will consider taking on part of Powerchip's debts. Elpida said the deal with Powerchip 'enables us to expand our output without making a major capital investment.' Elpida, which only produces DRAM chips, has a history of partnerships with Taiwan chipmakers, including technology tie-ups with its two biggest DRAM manufacturers and the launching in 2007 of a joint production firm with Powerchip. Elpida is expected to be listed on the T'aiwan stock market in March.

T'aiwan is the world's largest supplier of PC parts and its information technology industry has been increasing its ties to...China. Experts see Elpida's acquisition of Powerchip's DRAM unit as a positive move for the firm's marketing strategy. Plunging global prices for DRAM chips spurred Elpida and Powerchip to enter into talks over a possible management integration in the latter half of 2010. Powerchip's DRAM production arm is the firm's core undertaking, accounting for more than 60 percent of its semiconductor operations. The company, however, has found it difficult to keep making the huge investments necessary for equipment improvements. A financial report released by Powerchip on Monday showed the firm suffered deficits of 8.3 billion Taiwan dollars (23.5 billion yen/$286 million) from October to December 2010. The company was faced with the need to separate its DRAM unit from the rest of its operations, according to analysts. Powerchip has been planning to switch its main operations from DRAM chips to sensors and semiconductors for driving liquid-crystal displays, they said. Elpida will shift its production base for PC chips from Hiroshima Prefecture 広島県 to Taiwan, and the Hiroshima facility will concentrate on producing high value-added DRAMs for smartphones. Yang Juilin, a senior researcher at Taiwan's Industrial Technology Research Institute 工業技術研究院 and an expert on Taiwan's semiconductor industry, said: 'Taiwan's chipmakers are small scale compared with the global giants. They'd be destined for collapse if they don't realign through management mergers or other measures.' Taiwan authorities that oversee the industry said if Elpida helped domestic chipmakers, they would back Elpida's bid to be listed on the Taiwan stock market. Elpida has also been negotiating with the other major Taiwan DRAM maker, ProMOS Technologies, about boosting their tie-up, including a possible management merger. It seems likely that realignment and consolidation of the semiconductor industry in Japan and Taiwan will accelerate further. Given the ever-intensifying competition with South Korean rivals, success of the 'Japan-Taiwan alliance' is seen as crucial for the survival of the chip industry in both nations."

In short, in order to survive in today's cutthroat business environment, one must link up with one ex-colony in order to counter the threat posed by another ex-colony.

While perusing the Japan Times ジャパンタイムズ website this morning, I came across the following short Kyōdō News 共同通信社 article which brought back a few memories:

CITIES MULL TOUR ALLURE OF FACTORY LIGHTS

"Kawasaki 川崎 and three other cities with large coastal industrial zones will hold an event this month to discuss how to draw more people to popular tours featuring night views of factories. The tours, pioneered by officials in Kawasaki, have gained popularity especially among women attracted to the novelty of viewing big industrial facilities spewing flares and steam and bathed in sparkling lights. Kawasaki officials invited their counterparts from Muroran 室蘭, Hokkaidō 北海道; Yokkaichi 四日市, Mie Prefecture 三重県; and Kitakyūshū 北九州 to the 'night factory viewing summit' planned for Feb. 23. Kawasaki has organized viewing tours by boat and bus of industrial complexes since 2008. They often sell out, sometimes in less than 20 minutes, and 65 percent of the participants are women, a Kawasaki official said."

Having lived for a period of about 18 months in Yokkaichi, a city noted for its industrial complexes (as well as a respiratory disease, Yokkaichi asthma 四日市ぜんそく), I can attest to the strange allure of the コンビナート, especially at night:

http://f.hatena.ne.jp/images/fotolife/w/wami/20050320/20050320163200.jpg

 

http://fugees2.exblog.jp/tags/%E5%9B%9B%E6%97%A5%E5%B8%82%E3%82%B3%E3%83%B3%E3%83%93%E3%83%8A%E3%83%BC%E3%83%88/

There are times when Nature faces some serious competition.

And yet still in the news

It's going on three days now back in the States, and I've been using the time to reconnect with a number of things, such as book stores stocked with titles in languages that I can read, craft beers, Reese's Peanut Butter Cups, Cap'n Crunch cereal, Pop Tarts, maple bars and TV cartoons intended for mature audiences...and my family, of course, but then that's a given. The temperatures have been not much above freezing, but the freshness of the air makes the outdoors feel much more comfortable than it usually is back in Taiwan 台灣 during the Lunar New Year 春節. The beautifully clear skies we've been having so far certainly help, but though it's only a matter of time before the rains fall again in the Pacific Northwest (Thursday probably), it's been good to be back.

Meanwhile, back on the island of Formosa, Kyōdō News 共同通信社 has another article on developments on the local chipmaking front, which I have lifted from the pages of Japan Today ("Elpida to buy all DRAMs made by Powerchip Technology"):

"Elpida Memory Inc エルピーダメモリ株式会社 said Monday it has reached a basic agreement to buy all dynamic random access memory chips produced by Taiwanese semiconductor maker Powerchip Technology Corp, a move that will enable the Japanese chipmaker to boost its output capacity without new capital spending. Elpida has farmed out the production of DRAMs for personal computers to Powerchip since 2003 and currently buys half of the output, equivalent to 80,000 300-millimeter wafers per month. It also allows the Taiwanese firm to sell the remaining half under its own brand. When the agreement is finalized, Elpida will purchase all DRAMs produced by Powerchip and sell them under its brand. Powerchip is also licensed to buy 30,000 of 85,000 DRAMs produced per month by Rexchip Electronics Corp, a Taiwanese joint venture set up by Elpida and Powerchip in 2007, and sell them under its brand. Elpida will purchase all DRAMs from Rexchip for sale under its name when the final agreement takes effect. In addition, Elpida will study measures to turn around Powerchip’s ailing management such as purchasing its core plant."

On a completely unrelated note, the Stone Brewing Company's Stone IPA is one of the finest suds I've had the pleasure to enjoy so far on this visit home Now I'm on the lookout for Arrogant Bastard Ale and Stone Ruination IPA. Thanks for the tips, Gary!

Across the sea but still in the news

It's cold outside, and inside Amber is lapping up the attention she's receiving from her American set of grandparents, while also reaping the benefits of her birthday loot - six DVD's, courtesy of Barnes & Noble - yes, it's our annual winter visit to the USA. We'll be back to Taiwan 台灣 just before Valentine's Day, but in the meantime I'm making use of my father's (slow) Internet connection to keep up on things going on across the Pacific (as well as to delete annoying comments from Russian spammers). Like this Yomiuri Shimbun 読売新聞/Daily Yomiuri article, for example:

TAIPEI BACKS DRAM TIE-UP / 'JAPAN-TAIWAN ALLIANCE' SEEN BENEFICIAL FOR TAIWANESE CHIPMAKERS

"TAIPEI 台北 - Taiwan government authorities have thrown their support behind plans to form a 'Japan-Taiwan alliance' in semiconductor development and production as a way to help rebuild Taiwanese chip manufacturers in financial difficulty, The Yomiuri Shimbun has learned. A senior Taiwanese official, in an exclusive interview with the Yomiuri on Saturday, said Taiwan authorities were in favor of moves by Japan's leading manufacturer of dynamic random access memory (DRAM), Elpida Memory, Inc. エルピーダメモリ株式会社, to merge and consolidate management functions with its Taiwan counterparts. Elpida has been in consultations with Taiwan's two major DRAM makers, Powerchip Technology Corp. and ProMOS Technologies Inc., to discuss the feasibility of integrating management and establishing a holding company. Speaking on condition of anonymity, the the high-ranking official of Taiwan's Industrial Development Bureau of the Economic Affairs Ministry 中華民國經濟部 said the ministry had asked Elpida to transfer technology to Taiwanese chipmakers in exchange for Elpida's planned listing on Taiwan's stock market. Regarding the management integration prospects of the Japanese and Taiwanese firms, the official said, '[The Taiwanese authorities] have no intention of rejecting the idea [of Elpida's merger with Taiwanese chip manufacturers] as long as it can benefit Taiwanese makers.' Powerchip Technology acknowledged the same day that merger talks were in progress with Elpida, adding, 'There's a possibility of the negotiations leading to a full-fledged collaboration [between Powerchip and Elpida].' Powerchip ranks sixth in DRAM global market share. Elpida, established in 1999 through a merger of the DRAM arms of Hitachi Ltd. 株式会社日立製作所 and NEC Corp. 日本電気株式会社, and later joined by that of Mitsubishi Electric Corp. 三菱電機株式会社, had a 19.4 percent global market share as of the end of 2009, the world's third-largest. The Taiwan authorities' support for the envisioned Japan-Taiwan chip industry alliance is thought to be rooted in the belief that Taiwanese DRAM makers cannot survive on their own against the backdrop of plunging DRAM prices...The ongoing negotiations between Elpida and the two Taiwanese firms are expected to enter a crucial phase before March, when Elpida plans to list on the Taiwan stock market. Over the next month or so, Elpida and the Taiwanese companies are expected to engage in intense wheeling and dealing, with each keen to secure advantageous merger conditions. While the Taiwan authorities have high hopes that the Japanese and Taiwanese firms will strike a merger deal at the earliest possible time, the Japanese and Taiwanese DRAM manufacturers are quoted as saying unresolved disparities exist in the respective firms' business strategies. As the three companies also want to keep a portion of their respective corporate characteristics intact after a merger, the negotiations are expected to focus on how to narrow gaps in their business strategies...There is no telling what moves Elpida and the Taiwanese firms might take from here on, with Elpida scrutinizing measures Powerchip and ProMOS would take to cut their debts, an issue cited by Elpida as a prerequisite to any management integration agreement."

Apparently, the push for greater Japanese-Taiwanese cooperation in chipmaking operations comes from worries by the Taiwanese government that the local companies are slowly losing the DRAM battle to Samsung. It's certainly a more realistic fear than any imagined Korean conspiracies in taekwondo. But this is all so far away, and I'm on vacation, so now it's time to watch a little late night American TV before going off to bed.

新年快樂,恭喜發財

The Lunar New Year is almost upon us, with next Thursday being the start of the Year of the Rabbit 卯. Of course, everyone in Taiwan refers to this time as being the "Chinese New Year", but in deference to our friends in Korea, Vietnam and other non-Chinese societies who also observe this occasion, I'll take the more politically-correct path. I like the Japanese definition best - it's 旧正月, or the Old (or Former) New Year.

In any event, the Kaminoge family will be up before the break of dawn tomorrow morning in order to ensure that we reach Taiwan Taoyuan International Airport 台灣桃園國際機場 in plenty of time for our morning flight to Seattle, via Narita International Airport 成田国際空港. The next two weeks will be spent with my family, with Amber getting her once-a-year opportunity to see her grandparents, and to reconnect with her American side. We don't intend on going on any long trips, but I don't plan on just sitting on the sofa all day, and catching up on all those TV programs I've missed over the course of the past year (an exception will be made for the Super Bowl, of course!). There will be some personal business to attend to, but for the most part, I'm looking forward to just relaxing, and being back in a part of the world that I've spent far too much time away from.

With our new Canon キヤノン camera, I hope to take some good pictures while we're in the Pacific Northwest, and post them here in a couple weeks' time. So, without further ado, I wish all of you a Happy Lunar New Year, and may you have a prosperous Year of the Rabbit!

Xīn​nián​kuài​lè​ and Gōng​xǐ​fā​cái​!

Of red-crowned cameras and cranes

It feels like ages since I last posted something, but ten days isn't that long, actually. I would've written something about last Sunday, when we visited the science museum in the afternoon, and stopped off at a year-end market on the way home, with some pictures inserted to illustrate what we did and saw - only my until-now faithful デジカメ decided to launch Operation Shutdown on the day of my daughter's fifth birthday last week. Instead of doing what it is supposed to do, the Casio カシオ tormented me with messages reading "Lens Error" and "Retry Power On", before refusing to do anything at all. The problem can be fixed (hopefully, knock on wood and all that), but not before we leave this Sunday for our annual Lunar New Year 春節 visit back to the States to reconnect with my family. My wife went out this evening and purchased a Canon キヤノン IXUS 300 HS, so we should have something to enable us to record our Stateside journey, as well as a means to plaster photos of our trip here once we get back to Taiwan in two weeks' time.

http://www.camera.co.uk/wp-content/uploads/2010/05/IXUS-300-HS_3.jpg

In the meantime, here's a short Yomiuri Shimbun 読売新聞 article that can be found on today's Daily Yomiuri ザ・デイリー読売 website (Hokkaidō to give pair of cranes to Taiwan):

"SAPPORO 札幌 - The Hokkaidō 北海道 prefectural and Kushiro 釧路 municipal governments have decided to present a pair of Japanese red-crowned cranes タンチョウ to Taiwan in September, in an effort to breed the bird in a habitat far from its native Hokkaidō. Although red-crowned cranes are designated for special protection, their numbers have increased significantly, according to the prefectural government's Natural Environment Division. The division said the birds, bred at Kushiro Zoo 釧路市動物園, would be sent to Taipei Zoo 臺北市立動物園, which is now constructing a breeding facility for the cranes. The gift also is aimed at celebrating the centennial of the Xinhai Revolution on Oct. 10, which led to the downfall of the Qing dynasty and the establishment of the Republic of China 中華民國, according to the officials. Officials from both countries plan to discuss such details as how to send the birds to Taiwan. In Taiwan, the crane is a popular symbol of longevity and a happy married life."