Powerchip Semiconductor obtains NT$450 mln of loan

Jul. 28, 2009 (China Knowledge) - Powerchip Semiconductor Corp, Taiwan's second-largest memory-chip maker by revenue, has secured NT$450 million worth of loan from local chip maker Advanced Semiconductor Manufacturing Co, in order to repay its corporate bonds bought by the latter firm last year, sources reported.

As part of the deal, PSC will be collateralized by an equivalent amount of equity interest in Rexchip Electronics Corp, a joint venture it set up with Japan-based dynamic random access memory maker Elpida Memory Inc.

Earlier this month, Powertech Technology Inc and Kingston Technology jointly provided a loan worth NT$4 billion to the cash-strapped PSC, aiming to help the latter repay debts.

The loans can help ease PSC's pressure in a short term. However, PSC still need a lot of money to carry out technological upgrading and repay debt, said an analyst at Fubon Securities Co Ltd, adding that the long term performance of PSC is gloomy.

It is estimated that PSC will post a loss of NT$7 billion in the first half of this year. Meanwhile, other local DRAM makers in Taiwan, including Nanco Electronics Supply Co Ltd, ProMOS Technologies Inc and Inotera Memories Inc, will post a loss estimated at NT$35 billion during the period.