Transcend Information's board of directors has approved plans to lend Powerchip Semiconductor Corporation (PSC) a total of NT$1.5 billion (US$48 million), according to the DRAM module maker. PSC would collateralize its stake in Rexchip Electronics as part of the lending terms.
Transcend said the loan is to simply support PSC, and they have not talked about PSC adjusting its chip allocation.
Market watchers expect a tighter market for DRAM in the second half of 2010. Transcend's financial support is expected to strengthen its ties with PSC, and help it cope with anticipated chip shortages.