ProMOS Technologies Inc (茂德科技), the nation's third-biggest maker of computer memory chips, signed a NT$20.7 billion (US$630 million) syndicated loan yesterday to finance the expansion of a 12-inch fab.
The company said it would use the money primarily to fund the expansion of its third 12-inch factory, located in Taichung, according to the company's filing with the Taiwan Stock Exchange.
"The capital injection will help ProMOS speed up production using cost-saving 70-nanometer technology and thereby fuel the company's growth," ProMOS spokesman Ben Tseng (曾邦助) said in the filing.
The new plant is expected to start mass production in October, one-and-a-half months earlier than scheduled, Tseng said.
The plant is expected to produce 15,000 12-inch wafers a month.
Shares of ProMOS closed unchanged at NT$13.3 on the GRETAI Securities Market yesterday, compared with a 0.67 percent increase on the over-the-counter index.
The five-year syndicated loan was offered by a group of 13 banks, including the Bank of Taiwan (台灣銀行), Taiwan Business Bank (台灣中小企銀), Land Bank of Taiwan (台灣土地銀行) and Taiwan Cooperative Bank (合作金庫銀行).
On the sidelines of the signing ceremony, Taiwan Cooperative president Chen An-hsiung (陳安雄) told the Dow Jones Newswire that ProMOS reported a second-quarter loss of NT$2 billion to NT$3 billion.
The Hsinchu-based company, however, denied the report when contacted by the Taipei Times.
"Those are not our figures," a ProMOS official said yesterday on condition of anonymity because she was not authorized to speak to the media.
The company is scheduled to release its second-quarter financial report early next month.
The company posted a profit of NT$4.33 billion, or NT$0.66 earnings per share, in the first quarter.
In April, it raised its spending on new facilities and equipment to around NT$1.88 billion for this year, from a previous estimate of NT$1.2 billion.
Credit Suisse on Tuesday upgraded ProMOS and bigger rival Powerchip Semiconductor Corp (
The brokerage house also warned that computer memory chipmakers would post weak profits for the second and third quarters but show improvement in the fourth quarter.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
ELECTRIC FARMLAND: TSMC’s proposal to clear 230 hectares of reforested land for what would become Taiwan’s largest photovoltaic solar farm has generated concerns New rules curbing solar farms built on agricultural land sparked fierce debate at a packed public hearing at the Legislative Yuan yesterday, with industry representatives saying that the new restrictions would endanger President Tsai Ing-wen’s (蔡英文) green energy goals, while agricultural officials emphasized the importance of protecting farmers and the environment. The Tsai administration has set a target to generate 20 percent of the nation’s power from renewable sources by 2025, by which time it also aims to install 20 gigawatts (GW) of solar power, including 6GW from rooftop solar systems and 14GW from ground-mounted solar farms. Although rooftop solar systems are
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted monthly revenue that suggested second-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chipmaker weather the COVID-19 pandemic and US sanctions on its second-biggest customer Huawei Technologies Co (華為). Apple Inc’s main iPhone chipmaker posted sales of NT$120.88 billion (US$4.08 billion) for last month, up 40.8 percent year-on-year and bringing its revenue for the second quarter to NT$310.7 billion, beating the NT$308.8 billion analysts expected on average. TSMC, a barometer for the industry thanks to its heft in the global supply chain, had previously lowered its revenue outlook for this
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees