Asia Express - East Asian ICT
Siliconware Precision Industries to Invest in Government-backed Taiwan Memory Company
August 14, 2009
Taiwanese chip packaging and testing company SPIL (Siliconware Precision Industries) has decided to invest between NT$1 billion (US$30.4 million; US$1=NT$32.9) to NT$2 billion (US$60.8 million) in TMC (Taiwan Memory Company), a government-backed memory chip company, Taiwan's Economic Daily News reported on August 14. SPIL is reportedly the first private-owned company to invest in TMC, which was established at the end of July 2009 with an initial capital of NT$500,000 (US$15,198). As per TMC's founding scenario, the company will become a fabless DRAM (Dynamic Random Access Memory) designer and deal in patent licensing to obtain production capacities from other chip makers.

According to TMC's initial scheme, the company will raise a total fund of NT$18 billion (US$547.1 million) in two phases, with the government and the private sector holding 45% and 55% stakes, respectively. The first phase of NT$11 billion (US$334.3 million) will be completed by the end of this year, mainly used to acquire a 9.5% stake in Japan's Elpida. The second phase is projected to raise NT$7 billion (US$212.8), and TMC will continue to acquire another 10.5% stake in Elpida, which will bring TMC's total stake in Elpida to 20%, according to the Economic Daily News report.