ProMOS Technologies announced the sale of ProMOS (Chongqing) Technologies, its wholly owned subsidiary semiconductor maker located in Xiyoung Micro-electronics Industrial Park in Chingqing, western China, including the equipment of a 8-inch fab, to AVIC Systems, a subsidiary of China's state-owned enterprise Aviation Industry Corporation of China (AVIC), at a preliminary price of CNY100 million.

The sales transaction covers the subsidiary and its corporate assets and liabilities except the land and buildings of the 8-inch fab owned by the Chongqing City Government.

While ProMOS has cumulatively invested US$132 million in the subsidiary, the latter had incurred a total net loss of NT$3.833 billion (US$116 million) in 2008-2010. The subsidiary currently produces power management ICs using 8,000-10,000 8-inch wafers a month, far below 20,000-30,000 wafers necessary to reach break-even operation.

While the sales price is thought to be too low, the deal means that ProMOS has solve a thorny problem, at least avoiding continued losses from the subsidiary, according to industry sources in Taiwan.

AVIC Systems will use the fab to produce ICs for own use, ProMOS indicated

By: DocMemory
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