Wed, Jul 01, 2009 - Page 11 News List

Powerchip affirms Elpida ties amid reshuffle of board

By Kevin Chen  /  STAFF REPORTER

Powerchip Semiconductor Corp (力晶) said yesterday its partnership with Elpida Memory Inc remains unchanged, even though the Japanese firm has quit its seat on the board of Taiwan’s largest computer memory chipmaker.

“There’s no change in research and development collaboration or in ... capacity-sharing between Powerchip and Elpida,” Powerchip vice president and spokesman Eric Tang (譚仲民) said yesterday. “We also see no change in cross-border commercial agreements.”

Tang’s remark came after the Japanese chipmaker withdrew from the Powerchip board as the latter intensifies its relationship with state-sponsored Taiwan Memory Co (TMC, 台灣記憶體公司).

Tang confirmed that Elpida had given up its seat on Powerchip’s board. But he said executives at the two firms were in touch and that there was no need for Elpida delegates to fly to Taipei to attend board meetings.

“Powerchip has good and regular communications with Elpida on the board of Rexchip Electronics Inc (瑞晶),” Tang said.

Rexchip is a joint venture between Powerchip and Elpida established in Taichung in 2006.

Elpida took a seat on Powerchip’s board in 2003 after the Tokyo-based chipmaker bought a stake in the firm.

Elpida board meeting attendance, however, decreased over the past six months even as Powerchip discussed financial difficulties and recovery efforts, such as bond redemption terms.

“Against this backdrop, Elpida has requested to withdraw from Powerchip’s board ... Powerchip will fill the position left by Elpida with a new, independent director,” Tang said.

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