Powerchip takes 0.6% stake in ProMOS

Powerchip Semiconductor Corp (力晶半導體), the nation's third-largest computer memory-chipmaker, said it bought a 0.6 percent stake in bigger rival ProMOS Technologies Inc (茂德科技) and may increase its holding to try to take advantage of rising demand and higher prices for chips used in consumer electronics.

Powerchip has spent NT$590 million (US$17.9 million) since April 5 to buy the stake in the country's second-largest memory-chipmaker, Powerchip said in a statement to the Taiwan Stock Exchange.

The companies have both posted two straight quarters of profit as the semiconductor industry recovers from a three-year slump. Powerchip's first-quarter sales more than tripled to NT$10.5 billion and ProMOS's sales nearly doubled to NT$9.6 billion. The companies haven't reported net income for the three-month period.

Powerchip may increase its stake in ProMOS, depending on the stock price and the performance of the memory-chip market, said spokesman Eric Tang (譚仲民).