Samsung looks to raise $1 billion through overseas bonds for chip factory expansion
Texas facility set for growth
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.
Post a comment - Please log in to leave a comment
Kabam acquires RPG dev Phoenix Age for a rumoured $90 millionLATEST FEATURES
Chart of the Week: 3 graphs that demonstrate the opportunities and challenges of China's mobile games marketLATEST COMMENTS
Metaps' zero commission pay-per-click DirectTAP ad network opens its doors 1