Taipei: Powerchip Semiconductor Manufacturing Corp. (PSMC) has announced plans to issue global depositary receipts (GDRs) as part of its strategy to raise working capital, leveraging the recovery within the global semiconductor sector. The company aims to sell GDRs equivalent to up to 420 million common shares, potentially raising approximately NT$26.3 billion, based on the closing price of NT$62.60 in Taiwan.
According to Focus Taiwan, PSMC has outlined a plan to initiate a rights issue to facilitate the issuance of new shares for the GDR sale. This approach allows existing shareholders the opportunity to purchase additional shares. The company has scheduled a general meeting on April 10 to deliberate on the common share issuance, the GDR deal, and a potential reshuffle of its board of directors.
In addition to enhancing its working capital, PSMC intends to use the proceeds from the GDR sale to repay bank loans and support its future growth initiatives. This move follows the recent announcement of an exclusive letter of intent with Micron Technology, Inc., a U.S.-based DRAM maker, to sell its P5 fab in Tongluo, Miaoli County, for US$1.8 billion. The transaction is expected to be finalized in the second quarter of this year.
The agreement with Micron will establish a long-term foundry collaboration, focusing on advanced DRAM packaging wafer manufacturing, with Micron assisting PSMC in strengthening its specialty DRAM processes. Following the sale of the Tongluo plant, PSMC plans to bolster its financial structure and capitalize on the semiconductor sector recovery by integrating advanced packaging technologies and materials.
PSMC Chairman Frank Huang emphasized the company’s strategy to reorganize its production resources, including its three 12-inch and two 8-inch wafer fabs, to enhance its position within the AI supply chain. PSMC will concentrate on developing value-added wafer foundry products for AI applications, such as 3D AI DRAMs, WoW, silicon interposers, integrated passive devices, power management ICs, and power components.