According to a report by DigiTimes, Kingston Technology is vouching for memory chip maker ProMOS Technologies and has agreed to act as a guarantor for the latter's application for a syndicated loan worth approximately $148 million. Of that $148 million,which is to be paid by nine local banks, Kingston has reportedly agreed to guarantee somewhere between $44 to $60 million.
Memory chip makers have found themselves in dire straights over slumping memory prices and an unforgiving global economy. The situation has gotten so bad that Qimonda, one of the world's top 10 memory chip suppliers, recently filed for bankruptcy. ProMOS has also been struggling, suffering losses adding up to $675 million in the first three quarters of 2008. Earlier this month, ProMOS submitted its application for a government-led bailout package.