March 2, 2007 – In order to raise more funds for capacity expansion at a second DRAM plant, Inotera Memories Inc. plans to issue about $305 million in unsecured 5-7 year bonds sometime in 2Q07, following a similar recent move by fellow DRAM chipmaker ProMOS Technologies Inc., according to the Taiwan Economic News.
In addition, the company plans to seek a syndicated loan for another ~$610 million by year’s end, the paper reported.
Inotera’s first DRAM plant has reached full capacity of 60,000 wafers/month, and projects a 20% increase in shipments during 1Q07 from 4Q06. Now, the company wants extra funds to expand production capacity at a second plant, according to the paper.
Another DRAM manufacturer, Nanya Technologies Inc., also is seeking fresh funding to help push to mass production at its 300mm facility. The company has a capital spending budget of about $1.82 billion this year, and wants to issue corporate bonds or secure syndicated loans to help avoid capital inflation risks, the paper noted.