The auction of DRAM maker ProMOS's 300-millimeter plant in the Central Taiwan Science Park ended in failure yesterday with no bidders coming forward to pay the NT$1.5 billion deposit, said Lu Tung-ying, who is in charge of ProMOS's restructuring effort.

While one foreign buyer went to the auction and submitted a bid, the buyer did not pay the deposit, which was required for the auction to go on, Lu said.

 “Buying a semiconductor fab is not like buying something at the supermarket,” Lu said. “Prior to the auction, two groups of foreign buyers visited the plant. Yet NT$1.5 billion is not a small number.”

 He said whether the plant will be sold will depend on the second auction, which is to take place Dec. 12.

 There has been speculation that one of the potential buyers was Vanguard International Semiconductor, which has reportedly visited the site several times and made numerous inquiries. The company however did not show up at the auction yesterday.

 According to market speculation, Vanguard, as well as other interested buyers, are waiting to see whether the base price of NT$19.5 billion can be slashed.

 To this, Lu said that the NT$19.5 billion base price will remain the same during the next auction.

 ProMOS had loans of over NT$50 billion that it wasn't able to pay back. The firm's net worth also turned negative and was forced to delist from the stock market and file for bankruptcy, which was granted by the court.