Cash-strapped Powerchip Technology reportedly is exploring various options, including selling one of its 12-inch plants, in order to continue gaining support from its creditor banks, according to a recent Chinese-language Commercial Times report.
Powerchip is seeking to give the banks a proposal to pay off its debts, the report quoted market sources as indicating. In addition to restructuring its business, Powerchip might scale back its production operations by selling another 12-inch fab. The moves are to improve the company's cash structure and also ensure its ability to repay, according to the report.
Powerchip previously sold its P4 plant, which had been left idle after the shell construction was completed, and a land lot next to the facility to Taiwan Semiconductor Manufacturing Company (TSMC). It recognized about NT$2.9 billion (US$96 million) from the sale.