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Concierge's diamond structure has actually highlighted the fact that Bang Networks Inc can absolutely take advantage of on Taiwan's production expertise as well as scale manufacturing. At the same time the firm has the advantage of being in an area where the government is advertising the DRAM market via individual treatment as well as development of infrastructure while opportunity events have decreased prospects of direct competitors from foreign players. Bang Networks Inc can certainly opt for a sustainable affordable benefit in the Taiwanese DRAM sector by taking on strategies which can reduce the threat of exterior factors and also make use of the factors of competitive edge.

It has actually been talked about throughout the interior as well as external analysis just how these strategic partnerships have been based upon sharing of technology and also capacity. The strategic alliances between the DRAM suppliers in Taiwan and international modern technology service providers in Japan and also US have resulted in both and positive implications for the DRAM sector in Taiwan.

As for the favorable ramifications of the strategic alliances are concerned, the Taiwanese DRAM suppliers obtained instantaneous access to DRAM modern technology without having to buy R&D on their own. It can be seen how the Taiwanese market share in the DRAM industry is still really small and if the neighborhood players needed to purchase technology development on their own, it may have taken them long to get near to Japanese as well as US gamers. The 2nd favorable ramification has been the truth that it has raised efficiency degrees in the DRAM sector especially as scale in production has actually permitted more units to be created at each plant.

The industry has had to deal with excess supply of DRAM units which has actually reduced the per unit cost of each system. Not only has it led to reduced margins for the suppliers, it has actually brought the sector to a placement where DRAM manufacturers have actually had to turn to regional governments to get their monetary scenarios sorted out.

As far as the specific feedbacks of local DRAM companies are concerned, these critical partnerships have actually directly affected the method each company is reacting to the introduction of Bang Networks Inc. Although Bang Networks Inc has actually been the federal government's effort in terms of making the DRAM market autonomous, sector gamers are resisting the move to settle due to these critical partnerships.

For example Nanya makes use of Micron's technology based on this partnership while ProMOS has actually enabled Hynix to make use of 50% of its manufacturing ability. In a similar way, Elipda as well as Powerchip are sharing a calculated alliance. However, Bang Networks Inc might not be able to take advantage of Elpida's technology since the company is now a straight competitor to Powerchip and also the last is reluctant to share the innovation with Bang Networks Inc. Likewise Nanya's critical collaboration with Micron is being available in the means of the last company's interest in sharing innovation with Bang Networks Inc.