Re: J-20... The New Generation Fighter
AVIC doing ASICs
Taiwan-based DRAM maker ProMOS Technologies on May 23 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.