SAN FRANCISCO—Taiwanese memory chip vendor Powerchip Technology Corp. is considering the sale of one of its 300-mm fabs to help pay off debt at the request of one of its creditors, according to a report by the Taipei Times.
Powerchip (Hsinchu, Taiwan) began negotiating with creditors early this month in the hopes of rolling over over about $602 million in bank loans due within the next year, according to the report. The company currently has about NT$46 billion (about $1.5 billion) in overdue bank loans, including the $602 million, according to the report.
Powerchip currently has a trio of 300-mm fabs in Hsinchu, in addition to Maxchip, its high-voltage foundry spin off. According to the report, the fab that Powerchip is considering selling is P3, located in a separate facility from P1, P2 and Maxchip.
Early this year, foundry giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) paid about $100 million to Powerchip to acquire a fab and additional land.
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