Frank Huang has resigned as chairman of Powerchip Technology to take responsibility for the upcoming delisting of the company's shares.

Steve Chen, formerly Taiwan's minister of economic affairs, has taken over the position of chairman of Powerchip, the company indicated.

Trading of Powerchip shares will be suspended on Taiwan's over-the-counter (OTC) securities market on December 11, as the net value of the company's shares has slipped into the negative territory indicating a further structural deterioration of its financial position.

While Powerchip's business restructuring has not yet completed, Huang will continue to serve as CEO of Powerchip and also a board members to carry on his unfinished work, the company said.

Powerchip has moved to reduce its exposure to the PC DRAM market, while expanding its foundry business. The profits and cash flow generated from Powerchip's foundry division, however, were still offset by losses stemming from the company's DRAM business in the most-recent quarter. Powerchip suffered net losses of NT$4.57 billion (US$157.9 million) in the third quarter of 2012, with the net value of its shares coming to negative NT$1.36.

By: DocMemory
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