Powerchip Receives US$125 Mln Aid from Powertech, Kingston
July 12, 2009
Taiwanese DRAM (Dynamic Random Access Memory)
manufacturer Powerchip Semiconductor has received a loan of US$125 million from
Taiwanese memory chip testing and packaging company Powertech Technology and US
DRAM module supplier Kingston Technology, Economic Daily News of Taiwan
reported on July 10. Of the one-year loan, 13.6%, or US$17 million, will be
provided by Powertech, while the rest will be provided by Kingston, the largest
shareholder of Powertech. It is reported that Powerchip will use the loan as
its working capital and to repay debts to Powertech and Kingston. Also,
Powerchip will provide its shares in subsidiary Rexchip Electronics as a guarantee
for the loan. Impacted by the downturn of the DRAM industry and pressured by
continued financial woe, Powerchip said in June that it was considering cutting
back on capital expenditure and disposing of certain assets to tide over the
crisis.