Taiwan-based DRAM maker Powerchip Technology has said it is in talks with Elpida Memory and Rexchip Electronics about its overdue payments. Rexchip on December 31 issued a company filing with the Taiwan Stock Exchange (TSE) saying it has to suspend DRAM shipments to Powerchip because it is unable to pay.
Powerchip revealed it is strapped for cash and therefore is unable to fulfill the payments owed to Rexchip, which is a joint venture between Powerchip and Elpida. Powerchip said it is negotiating for other alternatives.
Powerchip now holds an about 30% stake in Rexchip, and Elpida takes up the remainder.
Powerchip shares slid to as low as NT$5.40 (US$0.19) on January 3, down from the closing price of NT$5.80 on December 31.