ProMOS Technologies Inc (茂德科技), the nation's No. 3 computer chipmaker, yesterday said chairman Chen Min-liang (陳民良) would keep his promise by acting as a guarantor for the company's newly approved NT$3 billion (US$87 million) in bank loans. The firm dismissed speculation that creditor banks might reconsider the capital injection because of Chen's request for a change in status.
ProMOS’ share price plunged 6.19 percent to a record low of NT$0.91 yesterday amid renewed concern about the company’s financial status. The benchmark index closed up 3 percent yesterday.
The NT$3 billion loans are crucial as they are the only capital available for the Hsinchu-based chipmaker to repay debt. ProMOS has offered to buy back US$335.6 million in outstanding convertible bonds for 10 percent of their face value after failing to raise sufficient funds to make full repayment of the debt. The tender offer will end on March 21.
“The company chairman did not break the promise he made to the creditor banks. He is still a guarantor for the syndicated loans,” ProMOS spokesman Ben Tseng (曾邦助) told the Taipei Times by telephone.
Tseng's clarification came after Chinese-language newspaper the Commercial Times said yesterday that Chen had refused to be a joint guarantor for the additional loans as originally agreed in December, which was one of requirements for the loans’ approval. The report said he had changed his mind and wanted to be a “general guarantor,” which carries less responsibility if the loans default.
Tseng said Chen did not reveal details on his guarantor status.
State-run Bank of Taiwan (臺灣銀行), ProMOS’ biggest creditor, could not be reached for comment as of press time. But Susan Chang (張秀蓮), chairwoman of the bank, told Dow Jones Newswires earlier yesterday that Chen wished to change his status to a “general” guarantor, instead of a “joint” guarantor.
A general guarantor has the right to claim money back from the borrowers in case of a loan default, while a joint guarantor enjoys no legal right to reclaim the money.
ProMOS posted an operating loss of NT$24.5 billion last year, it said on Feb. 19. Its cash dropped to NT$200 million as of Jan. 31 from NT$2.6 billion last June, it said.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would
RSS