ChipMOS Taiwan to Sell Idle, Non-core Assets

ChipMOS Technologies (Bermuda) Ltd has announced that its majority-owned Taiwanese subsidiary, ChipMOS Technologies Inc. (ChipMOS Taiwan) will receive approximately $11.6 million in the sale of its idle, non-core assets, including six sets of Advantest T5377 and Advantest T5377S Memory Test Systems, respectively, and a building located in Hsinchu Science Park, Taiwan.

The idle test equipments and building have been sold to third parties unrelated to the company. Payments of the respective objects have been evenly split into two tranches. The first payment was made before end of January 2011 and the second payment is scheduled to be made by the end of March 2011. Proceeds from the sales will be used to further pay down ChipMOS Taiwan's bank debt.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "These sales are part of our ongoing goal to enhance asset efficiency and efforts to have our asset profile match our business strategy as we continue to improve our financial position. We are already seeing the benefits of reducing our commodity DRAM. By focusing on higher margin business opportunities, ChipMOS is positioned to recapture its growth momentum."

ChipMOS