Powerchip Semiconductor Corp (力晶半導體), Taiwan's biggest maker of computer memory chips, signed a NT$59 billion (US$1.8 billion) syndicated loan yesterday to finance new equipment and the establishment of a new 12-inch fab.
Powerchip will use NT$20 billion of the money to buy new equipment, which will upgrade the chipmaker's manufacturing technology from 90-nanometer to the new 70-nanometer technology in its 12-inch factory, the company said in a filing to the Taiwan Stock Exchange.
The other NT$39 billion would be offered to Rexchip Electronics Corp (瑞晶), a joint venture with Japan's Elpida Memories Inc, to build four 12-inch fabs in Taichung, the statement said.
The six-year syndicated loan was offered by 19 banks, including Hua Nan Commercial Bank (華南銀行), Cathay United Bank (國泰世華銀行), the Bank of Taiwan (台灣銀行) and Taiwan Business Bank (台灣中小企銀).
Hua Nan Commercial Bank is the management bank of the NT$39 billion loan to Rexchip Electronics, and Cathay United Bank will manage the NT$20 billion loan to Powerchip, a statement released by Cathay United Bank said.
Rexchip plans to complete the construction of four plants, with a total capacity of 240,000 wafers per month, by the end of 2011, making the plants the world's largest single base to manufacture 12-inch wafers, the statement said.