Powertech acquires NOR’s China facility Spansion

BEIJING, CHINA: In what could mean as a shot in the arm for its businesses in China, Powertech Technology (PTI), the memory packaging and testing service provider based in Taiwan, has bought out Spansion, the China packaging and testing facility of American flash maker NOR. The deal was inked for a total transaction worth US$51 million.

By effecting the takeover, PTI has bought out 100 per cent of the Spansion facility shares at a unit price of US$495.17 through its subsidiary Powertech Holding, the company said in a filing with the Taiwan Stock Exchange.

PTI's acquisition of the Suzhou-based Spansion facility will help spruce up its multi-chip package memory back end service. This, when it happens, would help the company work much more closely with Japan's Elpida Memory, which has its expertise in mobile RAM for wireless and portable applications, said DigiTimes in a report.

Besides, with the take over now having happened, Powertech also might turn out to be a prominent back-end service provider for Spansion. The Spansion facility might then snip testing orders for ChipMOS Technologies, according to industry sources. ChipMOS is currently a major testing partner for Spansion with more than 200 IC testers.

Significantly, it may be recalled that Spansion had signed a memorandum of understanding (MOU) with Advanced Semiconductor Engineering Incorporated (ASE) to jointly operate its Suzhou facility, last year. However, the agreement had to cancelled after Spansion filed for insolvency proceedings in early 2009, said the report.