The top Elpida executive said his company made the decision out of concern that Taiwan's Legislative Yuan disapproved the government's plan to put money into TIMC. He added that the legislature's decision would hamper TIMC from acquiring enough money for the investment, which was originally set at NT$20 billion (US$625 million).
(PSC), said Elpida is much concerned about Taiwan government's investment in TIMC because without government capital TIMC would become a failure.
(TIMC), a Taiwan government-backed memory-chip startup, through two of its subsidiaries.
The financial holding company announced that Fubon Life would acquire 80 million of TIMC shares for NT$800 million (US$24 million at US$1:NT$33) and Fubon Venture Capital Consulting would invested NT$200 million (US$6 million) in the startup.
Fubon Financial Holdings President Victor Kung said his company decided to invest in TIMC because it is bright about the outlook of the new company besides the invitation by TIMC Chairman John Hsuan, who is also honorary vice chairman of silicon foundry United Microelectronics Corp.
TIMC plans to set its capital at NT$11 billion (US$333 million) in initial stage, with government fund confined within 50%.