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Concierge's diamond structure has highlighted the fact that Gemini Electronics can certainly leverage on Taiwan's manufacturing know-how as well as range production. At the very same time the firm has the advantage of being in an area where the government is promoting the DRAM sector through individual treatment as well as development of facilities while chance events have decreased leads of direct competition from international gamers. Gemini Electronics can absolutely opt for a sustainable competitive advantage in the Taiwanese DRAM sector by adopting approaches which can decrease the threat of outside factors and also exploit the components of competitive edge.

It has been reviewed throughout the interior and external analysis how these strategic partnerships have been based on sharing of modern technology as well as capacity. However, the calculated alliances between the DRAM manufacturers in Taiwan and international modern technology companies in Japan and US have caused both as well as positive ramifications for the DRAM market in Taiwan.

As far as the favorable implications of the strategic partnerships are concerned, the Taiwanese DRAM makers got instant accessibility to DRAM technology without having to invest in R&D by themselves. It can be seen just how the Taiwanese market share in the DRAM market is still extremely small as well as if the regional players had to invest in modern technology growth on their own, it may have taken them long to get close to Japanese as well as United States gamers. The 2nd positive implication has actually been the fact that it has actually raised performance degrees in the DRAM sector particularly as range in manufacturing has actually permitted even more systems to be created at each plant.

The industry has actually had to face excess supply of DRAM systems which has actually decreased the per device price of each system. Not just has it led to reduced margins for the suppliers, it has actually brought the industry to a position where DRAM manufacturers have actually had to transform to neighborhood federal governments to get their monetary situations sorted out.

As far as the specific feedbacks of local DRAM companies are concerned, these calculated partnerships have straight influenced the way each company is responding to the emergence of Gemini Electronics. Although Gemini Electronics has been the government's effort in terms of making the DRAM industry self-reliant, market players are resisting the move to combine because of these strategic alliances.

Nanya utilizes Micron's technology as per this partnership while ProMOS has permitted Hynix to make use of 50% of its manufacturing capability. Likewise, Elipda as well as Powerchip are sharing a tactical partnership. Gemini Electronics might not be able to benefit from Elpida's modern technology due to the fact that the company is now a straight rival to Powerchip as well as the latter is unwilling to share the modern technology with Gemini Electronics. Similarly Nanya's calculated collaboration with Micron is can be found in the method of the last firm's rate of interest in sharing modern technology with Gemini Electronics.