Samsung looks to raise $1 billion through overseas bonds for chip factory expansion

Samsung looks to raise $1 billion through overseas bonds for chip  factory expansion
According to Bloomberg, Samsung is planning to issue its first overseas bonds in 13 years, in order to expand production of processors used in mobile devices, Apple hardware included.

The Korean firm has sent requests for lending proposals to banks, with a $1 billion expansion of production capacity at its Austin, Texas factory pencilled in.

The report, published by the Korea Economic Daily was confirmed by Samsung spokesman James Chung, who iterated that the bonds would be issued by Samsung's US unit and would have a maturity of five years.

Fit to burst

"Samsung will probably receive very positive feedback from global investors," said Louis Shin, a credit analyst at Woori Investment in Seoul.

"Investors are thirsty for companies with good credit."

According to Bloomberg, Samsung's Austin factory has been producing at full capacity since October 2011, when it started manufacturing the A5 chips in Apple's iPhone 4S and iPad 2. 

Samsung says it's invested over $9 billion in various facilities at the site, including NAND flash memory chip manufacture and an R&D center. It spent $3.8 billion building and equiping the factory that makes A5 chips.

[source: Bloomberg]

When Matt was 7 years old he didn't write to Santa like the other little boys and girls. He wrote to Mario. When the rotund plumber replied, Matt's dedication to a life of gaming was established. Like an otaku David Carradine, he wandered the planet until becoming a writer at Pocket Gamer.


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