Tue, Sep 20, 2011 - Page 12 News List

Winbond signs NT$7bn loan deal for upgrades

By Amy Su  /  Staff Reporter

Memorychip maker Winbond Electronics Corp (華邦電子) yesterday announced that it has signed a NT$7 billion (US$235.06 million) five-year syndicated loan agreement with 17 domestic banks to finance equipment procurement for technology upgrades.

“Along with the syndication loan, advanced technology migration and forthcoming 46 nanometer [nm] products, mass production will enable the company to provide a complete product mix to world-class customers,” the company said in a statement.

The syndicated loan was led by Bank of Taiwan (台灣銀行), Chinatrust Commercial Bank (中國信託商業銀行), First Commercial Bank (第一銀行), Taiwan Cooperative Bank (合作金庫銀行), Taishin International Bank (台新銀行), E.Sun Commercial Bank (玉山銀行), Taipei Fubon Commercial Bank Co (台北富邦銀行), DBS Bank in Taiwan (星展銀行) and Bank SinoPac (永豐銀行), with another eight financial institutions also participating.

The loan subscription was more than NT$10 billion and the final facility amount was closed at NT$7 billion, reflecting high support from financial institutions for the company’s credit rating and positive business prospects, Bank of Taiwan said in a statement.

Winbond posted NT$387.08 million, or NT$0.11 a share, in net profit for the first half of the year, company financial data showed.

It showed better profitability than Nanya Technology Corp (南亞科技), the nation’s top DRAM maker, which reported NT$16.93 billion in net losses for the first half, and Powerchip Technology Corp (力晶科技), which changed its business focus to non-PC DRAM chips recently and posted NT$6.48 billion in net losses for the same period.

The company has continued to focus on Specialty Memory, with three major product lines of Specialty DRAM, Mobile RAM and NOR Flash, company statement showed.

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