Chi Mei Optoelectronics Corp (奇美電子), Taiwan's second-biggest maker of liquid-crystal displays, borrowed US$2.5 billion this week to spend on meeting soaring demand for LCD televisions and computer chips.
Chi Mei boosted a loan by 50 percent to NT$60 billion (US$1.85 billion) to build a new plant after banks offered more funds than it sought, the company said.
Siliconware Precision Industries Co (矽品精密), Taiwan's No. 2 computer chip packager, led chip firms seeking NT$19.5 billion of loans.
Chi Mei has earmarked NT$100 billion this year to spend on expanding capacity, a 60 percent increase from last year, it said on Feb. 9, while its bigger Taiwanese rival AU Optronics Corp (友達光電) plans to boost capital spending 19 percent.
"LCD makers such as Chi Mei and AU Optronics are much more on the radar screen for international lenders as a result of their growing business," said John Corrin, head of Asia loan syndication at Calyon, the investment banking unit of Credit Agricole SA.
"They're becoming more sophisticated and internationalized, providing opportunities for foreign banks," he said.
Chi Mei is borrowing to build a new factory in Tainan Vance Huang (黃建宗), a manager at Chi Mei's finance department, said in an interview.
Chi Mei is also getting a five-year US$180 million loan for its assembly plant in Ningbo, eastern China, he said.
"As these companies expand overseas, particularly in China, they can't solely rely on domestic lenders to meet their funding needs," Hong Kong-based Corrin said in an interview.
Taiwan computer chip packagers Siliconware, King Yuan Electronics Co (京元電子) and Phoenix Precision Technology Corp (全懋精密), are also borrowing to boost capacity.
Siliconware Precision is seeking a NT$7 billion loan, bankers bidding for the deal said.
It plans to boost its capital spending this year by 50 percent to NT$12 billion to provide for new factories and equipment, Chairman Bough Lin (林文伯) said.
Phoenix Precision, which is 17 percent owned by Siliconware and supplies semiconductors to packagers, is seeking a NT$6 billion loan, while King Yuan Electronics, which owns 9 percent of Siliconware, wants to borrow NT$6.5 billion, said bankers involved in the deals, who declined to be identified.
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