A wrap-up of financial news.
Infineon applies to inject US$131 million into Taiwan-based DRAM joint venture
Infineon Technologies has forwarded an application to the Investment Commission of Taiwan’s Ministry of Economic Affairs (MOEA) to inject NT$4.43 billion (about US$131) into Inotera Memories, a DRAM joint venture it set up with Taiwan-based Nanya Technology late last year.
The commission is expected to approve the application quickly as it is trying to improve Taiwan’s investment climate amid the current slow economic recovery, said a ranking commission official.
Infineon is apparently financing the joint venture with its own local-currency funds after it sold off the 30% stake it held in ProMOS Technologies – a DRAM joint venture it set up with Mosel Vitelic.
Inotera will start installing production equipment in December and is expected to begin production in May 2004 with a capacity of 20,000 12-inch wafers per month.
Asashi Glass increases its investment in Taiwan
AG Investment (Singapore), an investment arm of Asahi Glass of Japan, has obtained approval from Taiwan’s Investment Commission to pour US$5.88 million into its subsidiary in Taiwan, Asahi Glass Fine Techno Taiwan, aimed at boosting the subsidiary’s capacity to make glass substrates for TFT LCDs.
The Japanese company operates two 3-5G TFT LCD glass substrate back-end processing lines in Taiwan, which together are able to process 160,000 substrates per month.
Asahi is also building a glass polishing line as well as a TFT LCD glass furnace that will have an annual capacity of four million square meters of glass substrates in Taiwan, due to start mass production in January and September 2004, respectively.
Nippon Electric Glass to set up back-end processing lines in Taiwan
Nippon Electric Glass (NEG) of Japan has received Taiwan government approval to set up a glass substrate back-end processing plant in an export processing zone at Taichung Harbor in central Taiwan, with initial capital, including revolving funds, of NT$3 billion.
The back-end processing plant, which will have a floor area of 33,000 square meters, is due for construction by the end of this year and is scheduled for volume production around August or September 2004, according to an investment official.
NEG decided to set up its plant in Taichung after AU Optronics (AUO), a Taiwan-based TFT LCD maker, decided to set up a production base in the newly developed Central Taiwan Science-Based Industrial Park in Taichung County. NEG’s future investment projects in Taiwan could also include building a glass furnace, said the official.
Handset case maker Taiwan Green Point to launch debut ECB
Taiwan-based handset case maker Taiwan Green Point plans to issue up to US$40 million worth of ECBs (euro-convertible bonds) in the fourth quarter, the company said at a statement filed with the Taiwan Stock Exchange (TSE).
Proceeds will be used to expand its production lines in Taiwan and build new plants in China to meet rising demand from handset makers, the company said.
The ECB, the first overseas debt issue by Taiwan Green Point, will have a maturity of five years with a zero coupon rate. The company has yet to choose a lead underwriter.
IC design house Sitronix to list on Taiwan Stock Exchange
Taiwan-based IC design house Sitronix Technology has obtained approval to list on the TSE, with a stock code of 8016, the TSE said in a statement.
Sitronix focuses on designing driver ICs for local and overseas controller IC makers. Taiwan-based Wintek is one of its major clients.
Sitronix forecasts pre-tax profits of NT$235 million this year, compared with NT$92 million in 2002. It predicts an EPS of NT$6.63 this year, up from NT$4.21 in 2002.
Article translated by Steve Shen and edited by Richard So
