Taipei:GlobalWafers Co., a leading silicon wafer supplier based in Taiwan, announced plans to issue unsecured convertible bonds worth up to $500 million. The bonds will be issued in a private placement with U.S. memory chipmaker Micron Technology Inc. as the sole subscriber.

According to Focus Taiwan, the board of GlobalWafers approved the bond issuance during a meeting on Tuesday. The 10-year convertible bonds, bearing an annual coupon rate of 0.5 percent, are part of a strategic move to strengthen ties with Micron following a long-term agreement reached by the two companies in July.

The agreement aims to combine long-term supply commitments with strategic financial cooperation, enhancing GlobalWafers' capacity to supply advanced semiconductor wafers and support its U.S. operations. The bond subscription by Micron will provide GlobalWafers with $500 million in financing.

Doris Hsu, Chairperson and CEO of GlobalWafers, emphasized that the collaboration reflects a shift towards strategic partnerships in the industry, aiming to reinforce supply chain resilience and create sustainable value for the global semiconductor market.

GlobalWafers noted that the private placement plan requires approval from its shareholders. Prior to this bond issuance, the company completed a $1.432 billion global depositary receipt offering in September to finance raw material purchases, expand overseas production, and strengthen its financial structure.

In financial updates, GlobalWafers reported a net profit of NT$7.18 billion in the first nine months of the year, with earnings per share close to the full-year figure for 2025. Despite a 4.4 percent decline in consolidated sales to NT$44.07 billion, the board approved a cash dividend of NT$6 per share based on first-half earnings. The dividend distribution is scheduled for January 22, 2027.

GlobalWafers operates 18 facilities across nine countries, including Taiwan, China, the United States, Japan, Denmark, South Korea, Italy, Malaysia, and Singapore.