Taiwan's ProMOS Technologies Inc. made agreement on the sale of its 12-inch wafer fab to Silicon Valley-based contract chipmaker GlobalFoundries following its failure to make disposal of the asset in two previous auctions.

Debt-burden ProMOS has been failing to look for a buyer since 2011 to repay loans owed to several banks including Taiwan Cooperative Financial Holding Co. Ltd., Bank of Taiwan and Chinatrust Financial Holding Co. Ltd.

The Taiwanese chipmaker had been hoping to sell the facility for T$20 billion, a banking source told Reuters.

The problems of ProMOS stem from the struggling dynamic random access memory (DRAM) industry in the middle of the higher investment cost in new technology.