Chip Makers Seek Syndicated Bank Loans for Wafer Fab Construction
December 12, 2000 (TAIPEI) -- Macronix International Corp. and Nanya Technology Corp. have decided to raise around NT$30 billion by taking syndicated bank loans for the construction of 8-inch and 12-inch wafer fabrication plants.
Winbond Electronics Corp. and Powerchip Semiconductor Corp. have decided to follow suit next year.
These companies failed to raise funds by issuing new share rights in the local stock market, which has lost almost half its value since the new DPP-government took office on May 20. Syndicated bank loans, an indirect way to raise funds, will resolve these companies' difficulties in completing their new wafer fab plant constructions with financing difficult to raise in Taiwan's sluggish stock market, and therefore enable them to preserve their competitive edge.
Macronix met with Taiwan's leading commercial banks on Dec. 8 to negotiate the acquisition of syndicated loans. According to a well-placed source, the banks, which believe the company still has strong prospects, may agree to provide preferential interest rates on loans.
The success of securing the banks' large-scale loans will help Macronix to assure investors that the company will not scrap its new wafer fab plant construction, and therefore will not have wasted its efforts. Macronix said that its 8-inch wafer fab, the company's third plant, which held a ground breaking ceremony to start construction this July, would launch pioneer production next year on the support of bank's syndicated loans. Its fourth plant, the 12-inch wafer fab, will begin construction in 2002. The company said that it would diversify its fund-raising sources in the future to make sure of the proposed expansion projects.
Nanya Technology announced the construction of its third plant, the 12-inch wafer fab plant, would kick off next April on the strength of syndicated bank loans. China Trust Commercial Bank is said to be the sponsor of the company's required syndicated loan of NT$15 billion. (NT$33.03 = US$1)
(Commercial Times, Taiwan) |
