ProMOS Technologies, the Taiwanese chipmaker announced last Thursday that it had agreed to sell its twelve inch fabricator to GlobalFoundries. GlobalFoundries is a Silicon Valley based contract chipmaker.
Prior to the sale, the fabricator was offered twice for sale but the agreement failed to consummate. ProMOS shares were delisted due to heavy debt and has to repay loans to its creditors namely Taiwan Cooperative Financial Holding Co. Ltd, Chinatrust Financial Holding Co and the Bank of Taiwan.
An anonymous source said that ProMOS had priced the fabricator at T$20 billion or US$669.42 million. For this sale though, ProMOS did not provide details as to the terms of the transaction.
ProMOS is one fo the few companies still remaining in the global dynamic random access (DRAM) industry. The market has been hard hit by tumbling prices, stiff competitive markets and prohibitive costs of new technology investments.
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