The boards of Formosa Plastics Corp (台塑) and Formosa Petrochemical Corp (台塑石化), two of the four major units of the Formosa Plastics Group (FPG, 台塑集團), have decided to grant a loan of NT$7.4 billion (US$247 million) each to Nanya Technology Corp (南亞科技), the nation’s biggest PC DRAM chipmaker, a local newspaper reported.
The other two major FPG units, Formosa Chemicals & Fibre Corp (台灣化纖) and Nan Ya Plastics Corp (南亞塑膠), have also agreed to follow suit by each granting similar loans to Nanya Technology, the Chinese-language Economic Daily News reported.
Overall, Nanya Technology will receive a total of NT$29.6 billion in loans from its affiliated companies under the same group.
The loan will temporarily relieve Nanya Technology from risking falling into negative equity value and being delisted from the local stock exchange, the paper said.
While getting monetary assistance from the group, Nanya Technology also announced changes to its top leadership. The board of the company approved the appointment of Inotera Memories Inc (華亞科) chairman Charles Kau (高啟全) to serve as president, replacing Jih Lien (連日昌).
Also on Monday, the board of Formosa Petrochemical approved to lend NT$4.8 billion to Inotera Memories, breaking up the rumor that the Formosa group had given up on the DRAM industry.
Inotera Memories is a joint venture between Nanya Technology and the US-based Micron Technology Inc.
The company last week said executive vice president Scott Meikle would serve as president, effective from Sept. 1, to take charge of the company’s daily operation, replacing Kau.
In related news, the boards of Formosa Plastics and Formosa Petrochemical on Monday also signed off on their management’s financial reports for the first half of the year.
Formosa Plastics posted revenues of NT$88.77 billion and a net income of NT$3.66 billion, with earnings per share of NT$0.6.
Formosa Petrochemical’s revenue and net income were NT$435.63 billion and NT$8.81 billion respectively, with EPS of NT$0.93.