BANGKOK, Thailand -- Germany's Infineon Technologies AG is being referenced as a $50 million supporter of a state-sponsored plan to resume building a wafer foundry in Thailand. The foundry, Submicron Technologies, stalled during the Asian financial crisis, but under a new financing plan is to be re-started and renamed B Square, a report said.
According to the report Thailand's state-owned debt restructuring agency announced Friday (August 30, 2002) that it had approved a plan to revive Submicron Technologies with support from foreign investors, including Infineon.
Under the deal, the Thai Asset Management Corp. (TAMC) will write off over 80% of Submicron Technologies' debt of about $350 million and swap the remainder for an 18% stake in the company.
Somchai Chongsangawong, an asset manager at TAMC, is reported to have said that Infineon Technologies will invest $50 million in B Square and provide technical support. TAMC is said to have added that Infineon will also buy the output from the factory. The restructuring is expected to enable the company to start manufacturing on 12-inch wafers in 2003.
Besides Infineon's $50 million and support in kind, another $30 million is anticipated from a consortium of other German investors. Lehman Brothers is expected to raise funds of up to $180 million from investors based in Singapore, and Standard Chartered plc is to provide $600 million worth of financing for the purchase of equipment, the report said.