Inotera Memories is considering raising another NT$10 billion (US$338 million) by April via a syndicated loan. The statement was made when the company announced that its planned private placement had been approved by its shareholders.
Inotera disclosed that US firm Micron Technology has agreed to subscribe to all the newly issued shares. Accordingly, Micron's stake in Inotera will rise to about 40%.
The upcoming fundraisers are expected to bring Inotera a combined NT$15 billion in capital, according to industry sources. The additional funds will help the firm repay debts which are due in the next few months, the sources indicated.
Inotera shares edged down 4% to close at NT$7.40 on the Taiwan Stock Exchange on February 22.
Inotera president Charles Kao claimed that the company is generating positive cash flow and now retains a relatively healthy financial structure. Inotera posted its eighth straight quarterly loss in the fourth quarter of 2011.
Inotera will move to accelerate its transition to 30nm process technology to further reduce costs in 2012, according to company chairman Jih Lien. At least 40,000 12-inch wafers will be made using the newer node by the middle of this year, said Lien.
Inotera runs a 12-inch wafer fab capable of producing about 130,000 wafers monthly.
Inotera to raise additional capital through private placement and syndicated loan
Photo: Michael Lee, Digitimes, February 2012
Article translated by Jessie Shen
