Powerchip Technology has reached an agreement with Elpida Memory and Rexchip Electronics about its overdue payments, allowing it to restart taking deliveries from Rexchip, according to Powerchip.
Powerchip on January 6 announced that it will continue to source a portion of Rexchip's chip output, mainly 2Gb DDR3 products, under a new contract. The previous deal, which was suspended earlier, has been automatically disabled, Powerchip indicated.
Powerchip revealed in the future it will need to pay the full amount to Rexchip each time it places an order. In addition, payments owed to Rexchip will be made through an installment plan, Powerchip said.
Rexchip on December 31 issued a filing with the Taiwan Stock Exchange disclosing it had discontinued DRAM shipments to Powerchip due to overdue accounts. But since the announcement, Rexchip has not provided an update regarding the situation.
Rexchip now runs a 12-inch plant with a monthly capacity of 80,00-85,000 wafers, of which Powerchip is allowed to claim 30% based on its holdings in Rexchip.