Aptos Technology Files for Bankruptcy Amid Mounting Losses in NAND Flash Packaging and SiP Assembly

On June 24, Taiwan-listed company TMC (2338.TW) announced that its indirectly held subsidiary Aptos Technology, in which it holds a 47.19% stake, has filed for bankruptcy due to a debt burden of NT$1.058 billion.

Founded in 2006, Aptos Technology specialized in Micro SD and NAND Flash packaging. However, intense industry competition, limited technological resources, and prolonged market headwinds—especially in the consumer SSD and memory sectors—have led to continued operational losses. Despite multiple efforts by TMC to support Aptos through group resource integration and expansion into system-in-package (SiP) assembly, the results were minimal.

On June 13, 2025, Aptos shareholders approved a resolution to dissolve the company. Following a financial review by court-appointed liquidators, it was confirmed that Aptos's assets were insufficient to cover its liabilities, prompting the formal bankruptcy filing.

While the bankruptcy raises concerns, the direct impact on parent company TMC appears limited. TMC primarily operates in the photomask manufacturing segment for front-end wafer processing, a business that does not significantly overlap with Aptos’s back-end packaging operations. Furthermore, Aptos’s financial losses have already been reflected in TMC’s consolidated statements over recent years.

On June 26, TMC’s board officially wrote off a NT$83 million loan to Aptos as bad debt—part of a strategic move to contain further losses and mitigate systemic risk. This “cut-loss” decision signals TMC’s intent to restructure and protect its core operations.

Importantly, TMC’s primary clients remain small to mid-sized IC design firms in the Greater China region, for whom it provides photomask services and facilitates wafer manufacturing through foundry partnerships. As a result, the short-term financial impact is expected to be limited.