ProMOS Technologies Inc (茂德科技), the nation’s third-largest maker of computer memory chips, yesterday said it had inked a memorandum of understanding with Elpida Memory Inc to make chips using the Japanese chipmaker’s advanced 60-nanometer technology.
The deal aimed to cope with change in the industry and to create bigger profits for the companies involved, ProMOS said in a company filing to the Taiwan Stock Exchange.
In a separate filing, ProMOS said its board gave the go-ahead to the formation of a new business unit to take care of its contract chip manufacturing business.
The announcement came after a downward spiral in computer memory chip prices since the third quarter. The price of benchmark computer memory chips will plunge more than 35 percent this quarter from last quarter, market researcher Gartner Inc has forecast.
Gartner expected prices to rebound in the third quarter of next year.
ProMOS said its board had also approved a plan to start negotiating with banks for an extension on unspecified loans after local rival Powerchip Technology Corp (力晶科技) said it was seeking a rollover of NT$40 billion in bank loans late last month.
The chipmaker’s losses shrank to NT$7.91 billion (US$227 million) in the first nine months of the year, from NT$17.96 billion a year ago.