Simon Chen, chairman for Taiwan-based memory module maker Adata Technology, will make an investment in Skymedi to hold a majority stake in the NAND flash device controller supplier, according to a report by Taiwan's Central News Agency (CNA).

Skymedi will draw Chen's investment through a private placement scheduled for 2016, said the report, without citing its sources. Skymedi plans to sell up to 40 million new shares through the private placement, which will be discussed at a provisional shareholders meeting on January 18, the report indicated.

Skymedi recently laid off almost two-thirds of its employees. The job cuts were made to save costs and to meet future operational management needs, the company said.