Thu, Dec 13, 2012 - Page 14 News List

ProMOS’ financial woes continue as auction fails again

By Lisa Wang  /  Staff reporter

Financially troubled ProMOS Technologies Inc (茂德科技) failed to sell its advanced 12-inch factory in a second-round auction yesterday because the bidding was lower than the floor price of NT$19.5 billion (US$670 million), according to auction organizer Taiwan Financial Asset Service Corp (台灣金服).

The sale is part of the memorychip maker’s restructuring plans which are being managed by the company’s creditor banks and trustees after ProMOS’ shareholders’ equity plunged to minus –NT$16.26 billion at the end of last year.

Vanguard International Semiconductor Corp (世界先進) and US private-held contract chipmaker GlobalFoundries Inc joined the bidding, following the abandonment of a first-round auction held on Nov. 29, according to Taiwan Financial Asset.

The bidding process failed because Vanguard offered a price less than NT$19.5 billion, while GlobalFoundries did not pay the required US$51 million security deposit, Taiwan Financial Asset said.

ProMOS originally planned to transfer the factory, located in Greater Taichung, to the winning bidder by the end of this month and hoped the buyer could restore operations by the Lunar New Year holidays in early February.

Separately, Nanya Technology Corp (南亞科技), the nation’s biggest PC DRAM chipmaker, yesterday posted NT$3.3 billion in losses last month, according to a company filing to the Taiwan Stock Exchange.

Nanya was requested to disclose its financial statement by the Taiwan Stock Exchange because of its weak financial status.

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