Powertech Technology (PTI), a Taiwan-based provider of memory IC packaging and testing service, will sell all of its 9.32% stake in Rexchip Electronics, Elpida Memory's Taiwan-based subsidiary maker of DRAM, to its large shareholder Kingston Technology at the original acquisition cost of NT$3.850 billion (US$131 million), according to decision made by the PTI board of directors on March 26.

PTI acquired the stake in late February 2012 as Taiwan-based DRAM maker Powerchip Technology's security for overdue payment of over NT$5.0 billion, according to industry sources in Taiwan. In consideration of possible drops in Rexchip stock price and realization of Powerchip's overdue payment, PTI has decided to sell the stake to Kingston, the sources pointed out.

Kingston's motivation of accepting the deal is because Rexchip has transferred state-of-the-art 25nm DRAM technology from Elpida and therefore becoming a shareholder of Rexchip will be helpful for Kingston's development in the global DRAM market on a long-term basis, the sources analyzed.

As for problems arising from Elpida's bankruptcy, PTI emphasized that it has handled financial affairs and risks involved, including assessment of account receivable and recognition of losses from non-operating investment, and will support Elpida, its long-time large client, to the maximum based on its capability.

PTI's board of directors on March 26 also decided to distribute a cash dividend per share of NT$2.0 for 2011 operation.

By: DocMemory
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