Nanya lines up funds for 2007 output expansion

October 24, 2006 – Taiwan memory chipmaker Nanya Technology Corp. plans to issue about $303 million worth of convertible bonds next month to provide a portion of its capacity expansion plans for 2007, according to the Taiwan Economic News. Nanya already has raised about $151 million by issuing corporate bonds.

Nanya’s plans call for more than doubling output at its first 300mm fab to 67,000 wafers/month by mid-2008, at a cost of $1.8 billion. Work will begin in 2007, with a first stage of expansion to tool the fab with 70nm process technology and increase output to 30,000 wafers/month.

By year’s end the company will have roughly $1.8 billion in cash, on top of the projected costs for its 300mm efforts, the report notes, adding that Nanya will issue more convertible bonds later this quarter. The report noted that Nanya’s parent company, Formosa Plastics Group, “is known for its capability in raising capital by issuing unsecured corporate bonds.”


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