Since leading DRAM names such as Samsung, Hynix, Micron and Elpida are planning to increase chip prices, it’s rumored that Taiwan's government might take a rain-check on establishing the Taiwan Memory Company (TMC), or at least have some difficulties in the process.

Since the economic crisis, TMC was the government’s plan to make things better, and many top players were relieved to see that the government isn’t planning on financial injections in individual companies, but rather forming a new company “seeking cooperation” with both domestic and foreign DRAM makers. 

The severe price cuts have so far made many a company to halt the aggressive pricing strategies, as this is not the time for going any cheaper. However, since the recently prophesized shortages, we might end up seeing prices go up.

Additionally, it is said that if the 1Gb DDR2 chips rebound to spot price of US$1.50, the existing vendors would probably distance themselves from the TMC, which would be far from ideal development and would probably make TMC "nobody's wife".

More here.