Taipei, Oct. 30, 2012 (CENS)--The four flagship companies of theFormosa Plastics Group (FPG) recently decided to raise around NT$10.9 billion (US$363 million) to finance Nan Ya TechnologyCorp. and assist Inotera Memories Inc. acquire NT$10 billion (US$333 million) of syndicated loan.
The four companies are Formosa Plastics Corp., Nan Ya Plastics Corp.,Formosa Chemical & Fiber Corp., and Formosa Petrochemical Corp. The made the decision regardless of escalating loss at the two DRAM(dynamic random access memory) subsidiaries. Last quarter saw Nan Ya lose NT$10 billion (US$333 million), a 51% increase from the previous quarter, with net loss per share of NT$0.64. Inotera's loss was NT$4.39 billion (US$146 million), surging 47% from the second quarter, with net loss per share of NT$0.81. Totally, the two companies had loss of NT$14.4 billion (US$482 million) last quarter.
Inotera will use the loan to accelerate migrating all its capacity of 130,000 wafers a month to 30nm process in the middle of next year.
The four FPG flagship companies will participate in Nan Ya's private equity placement aimed at raising NT$10.9 billion to keep the DRAM subsidiary from being delisted.
Nan Ya's president and concurrently Inotera's chairman, Charles Kao, pointed out that Nan Ya will accelerate exiting the commodity DRAM market for niche memory or even foundry market.
Nan Ya will halt contract production to Inotera by the end of next year after beginning reducing such orders this month, and may set aside part of its capacity for foundry service.
(by Ken Liu)
