Taiwan TFT-LCD makers to raise $5.2B in 2006

October 4, 2006 – Major Taiwanese manufacturers of thin-film transistor liquid-crystal displays (TFT-LCD) are expected to borrow roughly US $5.18 billion this year, to make up for a poor business climate suffered in 2Q, according to the Taiwan Economic News.

Nearly half of the funds came from two firms. AU Optronics Corp. (AUO) recently closed a syndicated bank loan worth about $1.68 billion, just before its merger with Quanta Display Inc. (QDI) — which itself raised $823 million earlier this summer also via syndicated bank loan. The report indicates that capital raised by the segment in 2H06 could top $3.03 billion, with all panel makers having fund-raising projects in the works.

The report, citing an unidentified senior financial executive of a local panel maker, noted that panel makers turn to syndicated bank loans to raise funds and keep their capitalizations from expanding. Currently, the debt ratios of Chi Mei Optoelectronics Corp. and AUO are a relatively high 55% and 50%, respectively (AUO would be 65% after its merger with QDI), due to concerns of excessive supplies.

Taiwan TFT-LCD makers’ capital-raising projects (2006)

Company………….Method…………………….Amount ($NT)*……………Date

AUO……………Syndicate bank loan…………55 billion………………September
QDI……………..Syndicate bank loan…………27 billion………………June
CMO……………Private raising………………….16.7 billion…………….May
CMO……………Syndicate bank loan………..60 billion………………March
CPT…………….ECB……………………………………8 billion………………July
HannStar…….Private corporate bond………1.5 billion…………….June
Innolux………..Cash capital increase………..8 billion………………October
TOTAL……………–………………………………..176.2 billion……………..–

* US$1 = NT$32.8
Source: Taiwan Economic News, company reports.

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

LIVE NEWS FEED

NEW PRODUCTS

New AFM with high definition electrical measurement capabilities
04/16/2015The Nano-Observer, designed by Concept Scientific Instruments, is ideal for current and future AFM research applications....
Thin wafer processing temporary bonding adhesive film for 3D wafer integration
03/24/2015 AI Technology, Inc (AIT) is the first known provider of a film format high temperature temporary bonding adhesive for thi...
Dramatic results achieved in cleaving glass using ultra-short pulsed lasers
03/11/2015ROFIN-SINAR, Inc. introduces the SmartCleave FI laser process and the MPS glass handling system for high speed and precise cl...