The company also emerges more profitable. Spansion failed to turn a profit from the time it was spun-off from AMD to the time it declared bankruptcy, but has posted net profits in the past two quarters.

Spansion's net profit in the first quarter of this year was $3.7 million, compared to a $512.6 million loss during the same time last year. Revenue was $277.3 million, down from $399.6 million. Spansion also reported a net profit of $4.3 million for the fourth quarter of last year.

The recession hit the chip industry hard. Memory chip manufacturers such as Spansion and Qimonda are normally hit harder during downturns because of the massive amounts of money they have to spend to build new chip factories, which cost around US$3 billion each.

Worldwide chip revenue fell 10.5 percent year-on-year to $228.4 billion last year, according to Gartner, the first time the industry has ever seen two-consecutive years of revenue declines. Industry revenue bottomed in the first quarter of last year and strengthened throughout the second half of the year.