Report: Elpida, Toshiba join Intel in PowerTech backing

March 5, 2007 – Elpida Memory Inc. and Toshiba Corp. make up the remainder of a $105 million private equity investment in Taiwan chip assembler PowerTech Technology Inc., according to the Taiwan Economic News.

Last week Intel confirmed rumors that it is placing one of its largest investments in Asia to date, $65 million, into PowerTech, which was Taiwan’s most profitable chip assembler during 2006. The company’s added NAND flash packaging and testing capabilities, as well as ties with memory module supplier Kingston Technology, helped seal the deal, according to reports.

Now, the paper indicates that Japanese firms Elpida and Toshiba are the other investors, each ponying up $20 million for the round of investment. Intel will hold a 4% stake in PowerTech, with the two other firms owning about 1%.

PowerTech has started the year right where it left off in 2006, achieving about $55 million in revenues, and has begun delivering small volumes to Intel as of mid-February, the paper reports. The company posted about $514 million in sales in 2006 and about $0.31/EPS, and projects 37% earnings growth in 2007 (to EPS $0.42) and nearly 50% higher revenues (to $757 million).


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.