Want China Times
Date: 2015-09-26
By: CNA
Taiwan’s Ministry of Economic Affairs on Friday approved conditionally an investment plan
From left, Powerchip president Alex Wang, company chair Steve Chen and CEO Frank Huang. (File photo/Tu Chih-hao)
in a Chinese chipmaker by local firm Powerchip Technology Corporation.
The ministry’s Investment Commission approved Powerchip’s application to remit 1.4 billion yuan (US$224.3 million) to acquire shares of Hefei Hejing Electronic Company, after a review of three months.
Hefei Hejing Electronics plans to spend 13.5 billion yuan (US$2.1 billion) on a new 12-inch fab, which will produce driver ICs for LCD TV panels.
But the commission set conditions that Powerchip must remit 300 million yuan (US$47.1 million) in the initial stage and the remaining 1.1 billion (US$177.3 million) in 2018. It also stipulated that only after paying back the syndicated loans of NT$15 billion (US$453.1 million) the company obtained locally, will it be able to apply for the remittance. [FULL STORY]
