September 10, 2012 — Taiwanese DRAM manufacturer Nanya Technology has received an equity investment from a subsidiary of Integrated Silicon Solution (ISSI) to bolster the companies’ foundry partnership.
Under the terms of the deal, ISSI majority-owned subsidiary Integrated Circuit Solution (ICSI) will invest $27M for a private placement of 443.7M Nanya shares, representing about 2.4% of the firm’s total shares outstanding. Nanya’s majority owner, Taiwan conglomerate Formosa Plastics Group (FPG), funded most of the remaining portion of the approximately $200 million private placement.
The deal gives ISSI access to certain guaranteed volumes of leading-edge process technologies, and planned future access to more advanced process nodes for specialty DRAM production. Nanya will also provide foundry support capabilities for continued development of ISSI’s NOR flash and analog products.
"We believe this is an excellent opportunity to invest in additional capacity to expand our DRAM product line to higher density devices and more advanced process nodes," stated Scott Howarth, ISSI’s president/CEO. Our investment and partnership with Nanya will help provide secure foundry access for our sourcing needs, while also providing foundry support and technology development for our flash and analog product lines as we execute our growth plans in these new areas."
"ISSI has a strong and growing specialty DRAM business closely aligned with our foundry capabilities and technology," added Charles Kau, president of Nanya. "We look forward to working with ISSI as a partner and customer to maximize our mutual opportunities in specialty DRAM technology, in particular for automotive, industrial and communication applications."