Taiwan-based DRAM chipmaker Powerchip Technology is seeking a fresh extension on the repayment of loans totaling about NT$40 billion (US$1.31 billion) it currently holds, according to the company.
Powerchip said it will negotiate with bank creditors for a one-year loan repayment extension. The company added the cash it now has on hand will be mainly utilized to purchase immersion lithography equipment.
Powerchip noted it has to speed up the migration to 45nm node technology to improve profitability. Spot market prices for mainstream 1Gb DDR3 have slid to between US$1.20-1.30, unfavorable for suppliers that use 63nm processes to make the chips.
Powerchip has installed one immersion scanner, and will take delivery of another set in the first half of 2011, the company said.
Powerchip's planned NT$16 billion budget for 2011 capex remains unchanged, the company claimed.
Powerchip in an earlier report revealed plans to withdraw its planned issuance of up to 800 million GDRs (global depository receipts), as its stock price was hurt by continued DRAM price drops.