Elpida Memory, which reportedly is seeking an extension on its public fund repayment, may not be able to gain financial support from Powertech Technology (PTI) as the Taiwan-based backend partner tends to shift its focus away from DRAM products, according to industry sources.

Elpida previously received JPY3.75 billion (US$50 million) worth of investment from Walton Advanced Engineering, PTI's fellow packaging and testing firm. Elpida said the transaction would strengthen the relationship between it and Walton.

PTI has been Elpida's longtime partner, the sources indicated. The backend supplier used to provide financial support its DRAM clients when they were cash strapped. ProMOS Technologies and Powerchip Technology were among the firms which in the past had received capital injections from PTI, the sources said.

However, PTI reportedly has no intention of financially supporting Elpida, which is struggling to make its repayment of the JPY30 billion in public funds received to restructure its business, the sources pointed out.

PTI at its most-recent investors meeting revealed plans to lower the proportion of standard DRAM products in company revenues substantially in 2012. PTI's recent acquisition of a controlling stake in Greatek Electronics also demonstrate its move to focus on logic semiconductors. 

Source:digitimes