Debt-ridden memorychip maker ProMOS Technologies Inc (茂德科技) is scheduled to auction off an advanced 12-inch factory, equipment and office building in Taichung for a floor price of NT$19.5 billion (US$669.5 million) today, paving the way for the company to start a restructuring plan.
Local contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), United Microelectronics Corp (聯電) and private contract chipmaker GlobalFoundries Inc are interesting in bidding for its assets, one of ProMOS restructuring trustees told Taiwan Financial Asset Service Corp (台灣金服), a Chinese-language newspaper reported.
Taiwan Financial Asset is helping ProMOS with the auction.
Vanguard International Semiconductor Corp (世界先進), which makes driver integrated circuits for LCD panels, could be another potential buyer of ProMOS’ assets.
The company said on Friday that it was evaluating the possibility of buying a factory to meet growing customer demand. Vanguard is 39 percent owned by TSMC.
ProMOS aims to transfer the assets to the winning bidder by the end of next month and hopes the buyer can restore the factory’s operations by the Lunar New Year holidays, which falls in February, Lu Daung-yen (呂東英), one of the firm’s trustees said in a filing to the Taiwan Stock Exchange on Nov. 5 after the first creditors’ meeting on ProMOS’ restructuring.
Last month, ProMOS’ major credit banks, Taiwan Cooperative Bank (合庫金庫銀行) and Bank of Taiwan (台灣銀行), received the go-ahead from the Hsinchu District Court to liquidate the financially troubled chipmaker. The company was also forced to delist its shares from the local stock market.
Lu, Eleanor Chin (金玉瑩) and ProMOS chairman Chen Min-liang (陳民良) were picked as ProMOS restructuring trustees.
The chipmaker said earlier that it planned to gradually cut 1,300 employees from its workforce in an attempt to transform into a chip designer from a chip manufacturer.
ProMOS failed to pay back NT$50 billion in bank loans after chronic chip price declines.
Last year alone, the memorychip maker lost NT$12.66 billion.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
DIVERSIFICATION: Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng (陳錦榮) said in a statement on Thursday. “Its growth