The board of directors of Macronix International has approved plans to buy ProMOS Technologies' 12-inch fab located at the Hsinchu Science Park (HSP) for NT$8.5 billion (US$271 million).
"This 300mm wafer fab will mainly fabricate high-density, high-quality ROM and NOR flash products," said Miin Wu, chairman and CEO of Macronix.
Wu revealed the new capacity will contribute 20,000 wafer starts to the company's current monthly capacity. The fab will also deploy Macronix' 45nm process technology, according to Wu.
Buying the 12-inch fab instead of building its own facility shortens construction time and saves costs, said Wu. Wu claimed Macronix is now the world's fourth-largest NOR flash chipmaker and the biggest serial flash supplier.
ProMOS said the deal will help it raise capital to upgrade equipment at its Central Taiwan Science Park plant for 63nm mass production. Factoring into the decision was the Hsinchu plant's inability to meet cost objectives for advanced DRAM manufacturing in the future, ProMOS added.