Powerchip Semiconductor Corp (力晶半導體), the nation’s largest maker of computer memory chips, has failed to obtain the approval of bondholders to adjust the payment terms of corporate bonds due next month.
In a filing to the Taiwan Stock Exchange yesterday, Powerchip said holders of the company’s US$158 million zero-interest overseas convertible bonds due on June 17 rejected the company’s request to change the payment terms.
The Hsinchu-based company approached bondholders on May 4 about adjusting the terms, including extending the conversion date to June 26 from June 17 and resetting the conversion price by June 26. The company hired Citigroup Global Markets Ltd to discuss the matter with bondholders.
Without approval, Powerchip will have to convert the corporate bonds into common shares at NT$20.17 per share under the original terms, undercutting the firm’s efforts to reduce its financial burden.
In late March, smaller rival ProMOS Technologies Inc (茂德) obtained the approval of a majority of bondholders to repay its overseas convertible bonds at a substantial discount to avoid defaulting amid increased losses.
The nation’s five major memory chipmakers, which also include Nanya Technology Corp (南亞), Inotera Memories Inc (華亞), ProMOS and Winbond Electronics Corp (華邦), reported record net losses of NT$154.3 billion last year as the sector faced its worst-ever glut, causing chip prices to plunge. Powerchip alone reported NT$57.53 billion in net losses last year.
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Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
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Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day