The focus of many Americans during the harsh economic times is aimed at failing businesses here in America. We know that the economy is doing poorly in other parts of the world as well, especially in countries where high technology industries are prolific.

One of the problem areas for Taiwan in the current economy is its widespread chip making industry. The DRAM industry in Taiwan is in a very similar situation to what the banking and automotive markets found themselves in here in America.

The Taiwanese government is looking at offering loans and other fixes to its ailing DRAM market to keep companies from going under and leaving thousands of employees without a job. CNET News Reports that on Thursday Taiwan's economic affairs ministry approved a rescue package for ailing DRAM makers.

Avi Cohen from Avian Securities says, "Something (the government) will have to do if they want to keep all those people employed (is offer assistance)." The reason many of Taiwan's DRAM makers are in such dire straits is that the Taiwanese DRAM industry is falling behind in terms of cost and production volumes.

The DRAM market is already flooded with products leading many makers to cut production and close facilities. Add that to the fact that some of the firms in Taiwan are operating on older technology assembly lines that aren’t as efficient in production volumes compared to firms operating on newer equipment and the DRAM industry for some companies is a money-losing proposition.

According to CNET News two of the Taiwanese DRAM firms in jeopardy are Powerchip Semiconductors and ProMOS. These firms are using older manufacturing technology where as Micron and Samsung have moved to newer generation technology leading to small profits, but profits nonetheless.

While terms of the bailout from the Taiwanese government are unknown, loans are the main source of help according to reports.