Inotera announces fundraising plan

Inotera Memories Inc (華亞半導體), the chip venture of Infineon Technologies AG and Nanya Technology Corp (南亞科技), plans to raise US$441.1 million selling shares overseas.

The company applied to regulators to raise the funds by selling global depositary receipts backed by new common shares, according to the Web site of the Securities and Futures Bureau in Taipei.

Inotera is selling shares to help fund a US$2 billion plant as it expands output of computer memory chips to tap a shortage after rivals such as Samsung Electronics Co shifted production lines to more profitable chips for consumer electronics.

Spot prices of computer memory chips surged more than 30 percent this year after tumbling 66 percent in last year, according to Taiwan-based DrameXchange.com, Asia's biggest market for the chips.

The chipmaker plans to sell 200 million shares at NT$33 (US$1.02) each to investors in Taiwan in an initial public offering, company president Charles Kau said in a telephone interview on Friday.

The Taoyuan-based chipmaker is 90 percent-owned by Nanya Technology and Infineon, Europe's largest chipmaker.

Inotera may raise US$500 million selling shares domestically and overseas this year, Kau said on Oct. 3.

The venture may sell more stock in 2007 to help pay for the new plant.