DRAM bailouts seen as a 'disaster'

The government in Taiwan--and possibly Korea--may seek to bail-out the failing DRAM makers in those nations, but an analyst warned that such an action would be a ''disaster'' for the industry as a whole.

In Taiwan, DRAM maker Powerchip Semiconductor Corp. is pleading for a bailout from the Taiwanese government, while ProMos Technology Corp. and Nanya Technology Corp. are reportedly seeking similar measures. Powerchip's partner, Elpida Memory Inc., may end up rescuing the company via an acquisition.