SAN JOSE, Calif. Taiwan DRAM maker Powerchip Semiconductor Corp. has denied any insider trading allegations concerning its holdings in Macronix International Co. Ltd., according to reports.
On Thursday (March 13), prosecutors raided Powerchip's offices and detained its chairman, Frank Huang, over alleged insider trading, according to Bloomberg.
Huang was released on bail the next morning, according to the report. ''Taiwan's Supreme Prosecutors Office said the latest probe relates to use of inside information to trade Macronix International Co. shares, leading to a NT$560 million ($18 million) profit for Huang and 'related people,' '' according to the report.
Powerchip owns less than a 1 percent stake in Macronix.
Last year, Powerchip failed in its bid to gain control of fellow memory supplier Macronix. During a boardroom showdown, Powerchip (Hsinchu, Taiwan) obtained only two seats on the 15-member board of Macronix (Hsinchu). Powerchip had hoped to win eight seats, which would have given it control of the company.