Vanguard International Semiconductor (VIS), a Taiwan Semiconductor Manufacturing Company (TSMC) affiliate specializing in analog/mixed-signal and logic ICs, has offered to acquire ProMOS Technologies' 12-inch wafer fab at the Central Taiwan Science Park (CTSP) for NT$10 billion (US$350 million), according to industry sources.
In response, VIS and ProMOS both said they were unaware of such a deal.
The sources claimed that in additional to VIS, a number of other chip companies have approached ProMOS about buying the only plant it currently has. But all these possible buyers proposed "conditional" offers as they do not wish to get involved in the financial problems of the DRAM maker, the sources indicated.
But ProMOS may end up being liquidated if it continues to be in severe debt and has to sell the CTSP facility, the sources pointed out. ProMOS's debts have totaled almost NT$80 billion, the sources estimated.
ProMOS has been struggling to find investors for its planned private placement to keep it afloat. It has failed to receive support from potential targets including Kingston Technology, United Microelectronics (UMC) and Elpida Memory, according to the sources.
ProMOS is expected to tranform itself to a dedicated foundry chipmaker if it successfully carries out the planned fundraiser, the sources indicated. The company recently announced it completed a joint technology development project with Silterra Malaysia, bringing Silterra's 0.13- and 0.11-micron High-Voltage (HV) process technology for small-panel LCD driver IC applications to ProMOS's CTSP plant. The technology is on track for mass production in the fourth quarter of 2011.
ProMOS in mid-2010 sold its 12-inch fab located at the Hsinchu Science Park (HSP), northern Taiwan, for NT$8.5 billion. The company noted the deal would help it raise capital to upgrade equipment at its CTSP plant.
About one year later, ProMOS sold its 8-inch fab in China for as low as CNY100 million (US$15.5 million). The company said that disbanding the money-losing subsidiary would help preserve cash and strengthen its capital structure.