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Your email address will not be published.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=""> <s> <strike> <strong>

LIVE NEWS FEED

NEW PRODUCTS

Novel Wafer Analyzer for up to 300mm wafer using high speed Raman Imaging Technology
08/08/2016Nanophoton introduces RAMANdrive - a new Wafer Analyzer - for a wide range of applications at semiconductor market a...
Pfeiffer Vacuum introduces HiPace 2800 turbopump for ion implantation applications
07/06/2016Pfeiffer Vacuum has introduced the HiPace 2800 IT turbopump that is designed for ion implantation applications....
NanoFocus AG introduces new inspection system for semiconductors industry
05/31/2016NanoFocus AG, the developer and manufacturer of optical 3D surface measuring technology, introduces the new measuring system µ...