Powerchip Semiconductor Corp (
Hsinchu-based Powerchip plans to spend NT$20 billion (US$581 million) on expanding production after concluding the agreement with Renesas, a venture between Mitsubishi Electric Corp and Hitachi Ltd, Powerchip spokesman Eric Tang (譚仲民) said.
The tie-up is the second Powerchip has reached with a Japanese chipmaker this year. The Taiwan company said in March it will sell as much as half of production from its newest plant this year to Elpida Memory Inc, a venture in which Hitachi, Japan's biggest electronics maker, is also a partner.
The company expects a second-quarter loss of NT$900 million before returning to profit in the second half, Powerchip president Brian Shieh (
Powerchip reported a loss of NT$2 billion for the three months ended March 31.
The company plans to raise US$250 million to US$350 million in the fourth quarter selling global depository receipts and bonds convertible into its shares, chairman Frank Huang (
Powerchip, which raised US$112 million selling bonds convertible into its shares this month, plans to more than double its production of 12-inch silicon wafers to 36,000 a month by the end of next year, Tang said.