Powerchip Semiconductor Corp (力晶半導體), Taiwan's largest computer memory-chip maker, plans to take control of Macronix International Co's (旺宏電子) board as demand rises for semiconductors used to store songs and pictures in music players.
The company has eight nominations for the 15-seat board of Macronix, a maker of flash memory used in electronic devices, Eric Tang (譚仲民), vice president of Hsinchu-based Powerchip, said by telephone yesterday, responding to a report in the Chinese-language Economic Daily News.
"We are Macronix's biggest shareholder and have the right to control the day-to-day operations," he said.
The plan will help Powerchip, which already makes flash chips with Macronix, to meet its goal to "aggressively diversify away" from computer memory as prices decline. The Economic Daily News said Powerchip aims to win half of Macronix's board seats, and one on its four-member supervisory board.
"It's a good move for Powerchip as it can get control of the more profitable flash business and gain Macronix's clients such as Nintendo Co," said Hung Tung-min, an analyst at E.Sun Investment Trust Co (玉山投信) in Taipei. Hung said Macronix sells flash chips used in Nintendo's portable DS player, and may seek to supply the Wii game console.
Powerchip has bought shares of Macronix since last year and now owns a 5.34 percent stake. The company, which currently isn't represented on Macronix's board, controls about 8 percent to 10 percent, including affiliates' holdings, Tang said.
He denied making a nomination for Macronix's supervisory board.
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