Taiwan-based Powerchip Technology has obtained an order for NAND flash using 4,000-5,000 12-inch wafer equivalents from Power Quotient International (PQI), a Taiwan-based memory module maker, according to industry sources in Taiwan. In response, Powerchip declined to comment.

With technology introduced from Japan-based Renesas Electronics, Powerchip began NAND flash production in early 2010 and this order is its largest in terms of volume since starting, the sources indicated. However, the order is for Powerchip to write off its debts to PQI, the sources pointed out.

Since early 2011, Powerchip has transformed its operation from making PC DRAM for own-brand sale to DRAM foundry service for Japan-based Elpida Memory, foundry production of specialty ICs including LCD driver ICs, CMOS sensors, NOR flash, power management ICs as well as own-brand production of NAND flash.

Powerchip will soon start 40nm production of 16Gb NAND flash chips, technologically legging behind 20nm process already adopted by Samsung Electronics, Toshiba, Micron Technology and Hynix but still making it the only Taiwan-based maker of NAND flash, the sources noted. Powerchip's sale of its NAND flash will bypass mainstream market to avoid competition with international suppliers, the sources indicated.