David Sun: Taiwan’s industry is threatened by Samsung

In the face of Taiwan's DRAM industry forces losing ground, Sun David, founder of Kingston, the leading manufacturer of memory modules, said that if the government does nothing, Taiwan’s DRAM industry will have no future, and all Samsung Electronics will have access to the industry. Faced with threats, including the panel, foundry, etc., because the characteristics of Taiwan's SMEs encountered Samsung, like an individual to the army, the future of each index industry may be destroyed.

Taiwan's DRAM industry was almost overwhelmed by the financial turmoil at the end of 2008. Although in the end each form survived, the issue of fundraising was not easy. As a result, DRAM makers continued to lag behind in process miniaturization, affecting industrial competitiveness and DRAM prices at the end of 2010. In the event of a second crash, even the leading spot market leader, Jing Jing, announced that it would withdraw from the standard DRAM brand and sales in early 2011 and that it will become a Elpida foundry. It is evident that Taiwan’s DRAM forces have gradually declined.

Regarding Taiwan's DRAM industry dilemma, David Sun said that if the Taiwanese government does not do anything and does not actively integrate, Taiwan's DRAM makers will have difficulty in surviving. Even if they survive, it will be very hard. At the time, Samsung and Hynix started as OEMs. Now, Technological autonomy, but Korean companies and Taiwan are not the same, South Korean companies are affiliated with the consortium, the government has always fully supported, because these large companies once closed down will hurt the national economy.

Taiwan’s industrial structure is dominated by small and medium-sized enterprises, and its advantages are flexibility and quick response. However, it is necessary to be self-reliant. Since most banks in Taiwan are small and medium-sized, it is difficult for the bank group to collapse once the industry finances are in crisis. David David worried that in almost all of Taiwan’s index industries, Samsung has been involved in everything from DRAM, panel to wafer foundry, and each business entity can complement each other. Assuming that Samsung earns 6 billion yuan in DRAM business, it can go to make up the wafer. Loss of OEM or sacrificing tactics of bundling is a common way for Samsung to support specific businesses and require customers to buy A to buy some B.

David Sun said that every company in Taiwan is an independent company. When it comes to a group company like Samsung, it is like an individual soldier on a regiment and a missile. It is not Taiwan’s industry’s fault, but this feature is the case with Samsung. Large group companies, Taiwan's industry is easily defeated by each.

However, it is also very difficult for Taiwan to imitate Samsung. If the government has the power to raise capital to buy a company from each index industry and become a business entity of its own, there may be some opportunities. However, Taiwan is a listed company and cannot be enforced. Companies and shareholders are required to abandon the company. David Sun said that even if the Samsung Group’s power is bigger, it will not be possible for one company to monopolize the market, and it will still meet competitors, just as Coca-Cola hit Pepsi, and Microsoft has met with rival Apple.

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