Spun off memory firm Spansion has told Taiwanese journalists that it is backing out of a memorandum of understanding it had with Advanced Semiconductor Engineering.

Spansion is in bankruptcy protection in the United States. It is a victim of the massive restructuring of Advanced Micro Devices (AMD) and is still a large manufacturer of NOR flash memory.

According to the Taipei Times, a Spansion marketeer told the Taiwanese press that because it entered Chapter 11 the deal with ASE went nowhere.

Now, instead of creating a chip test and packaging venture with ASE, instead Spansion is looking to outsource some activities to Asia.

Here's the Taipei Times story.