Memory chip maker Promos plans to sell wafer fab to Global Foundries
24 Feb 2012
Struggling Taiwan memory chip maker Promos Tech is planning to sell its 12-inch wafer fab to US-based contract chipmaker Global Foundries, for an estimated Taiwanese $20-30 billion ($676 million-$1 billion), industry paper Digitimes today reported, without citing sources.
Global Foundries, majority owned the Abu Dhabi government's investment arm Advanced Technology Investment Co, will also take on some of Promos' debt, the report said.
Promo, based in Hsinchu Science Park, Hsinchu, has debts of $1.9 billion and its stock has been suspended since September 2011.
The acquisition of Promos, which has a production capacity of 60,000 wafers per month at its Taichung fab, would add to the 130,000 wafers per month front of Global Foundries facilities in Germany and Singapore.
Promos manufactures high-performance and high-density commodity DRAM , SDRAM, Mobile RAM as well as LCD Driver IC products.
Sunnyvale, California-based Global Foundries is the world's third largest independent semiconductor foundry. It was created by the divestiture of the manufacturing side of Advanced Micro Devices Inc and was expanded through its merger with Chartered Semiconductor.
It manufactures integrated circuits for semiconductor companies such as AMD, Broadom, Qualcomm, and STMicroelectronics.
The company has five 200 mm fabrication plants in Singapore, and two 300 mm fabrication plants each in Germany and Singapore, as well as a new 300mm fabrication plant under construction in New York.
