BANGALORE, INDIA: Powerchip Semiconductor Corporation (PSC), the maker of DRAM chips, has received the nod for resetting the conversion price of its US$157.85 million worth of euro convertible bonds (ECBs).

The decision has been conveyed during the company's recent annual shareholders meeting.The DRAM chipmaker will therby reset the conversion price to US$600 for each US$1,000 worth of bonds, and will pay the remaining US$400 in cash.

Digitimes said in a report that PSC has the approval of 95 per cent of its bondholders to go ahed with the plan to reset the terms of the ECBs. The company is expected to settle its ECB issue soon, in its bid to resume trading under normal conditions on the Taiwan Stock Exchange. It may be recalled that the DRAM maker had been downgraded to the full-cash delivery only stock category on June 19.

The decision apart, Powerchip is also looking at lowering its capex budget for 2009 to less than US$151.10 million. PSC will now need to generate positive free cash flow in the third quarter prior to investing in process advancement.

It has been said that PSC will focus its efforts on 65nm for 2009. However, there are no plans yet as to how and when to foray into 50nm-class production.

It is also believed that PSC is looking forward to hike DRAM spot prices by limiting its supply to the spot market.