Share flop leads Procomp to seek receivership
Procomp Informatics, a GaAs chip producer based in Taiwan, sought bankruptcy protection on 16 June, according to Taipei Times, a Taiwanese newspaper. The company took the decision the day before it had to make a corporate bond payment.
Procomp, with a debt of nearly NT$3 billion ($89 million) in bonds, filed a restructuring plan to the local district court to prevent creditors getting hold of its assets.
The company, which is reportedly on the brink of shutdown, points to an aborted overseas share sale for its recent predicament. Only half of a planned $117 million was raised, leading to Procomp suspending its share sale.
Procomp was initially a computer motherboard manufacturer, but has since diversified and now has wireless communication and compound semiconductor divisions.
The compound semiconductor operation undertakes research, development, design and epitaxy of devices for microwave and optical communications, laser diodes (particularly for DVD applications) and LEDs.
Procomp was also involved in several joint ventures. In 2000 it established Suntek Compound Semiconductor Company, a HBT foundry, which transferred technology from Mitsubishi Electric and now claims to be Taiwan s largest GaAs IC manufacturer.
In addition, in 2002 in partnership with Sumitomo Electric Procomp founded Supra Opto to commercialize ZnSe white LEDs.
