Music Corp. unit sells chip production line for $4.5-M

Silicon Valley-based Music Semiconductors Inc. (MSI), a 90-percent subsidiary of the Philippine-listed investment holding firm Music Corp., has sold for $4.5 million one of its specialized chip products to a major US competitor.

In a disclosure to the Philippine Stock Exchange, Music Corp. acting chairman Jimmy Soo said MSI and Micron Technology, an American semiconductor company, have agreed in principle to the sale of MSI’s ternary CAM (content addressable memory) intellectual property assets.

Soo said the proceeds of the sale will enable MSI to pay off its debts and lift the company from its present predicament.

MSI is currently under involuntary petition with the US Bankruptcy Court in the Northern District of California, San Jose Division.

Micron’s acquisition of MSI’s assets is in, fact, being conducted under the court’s supervision, which is anticipated to resolve the petition.– Conrado Diaz Jr.