LONDON – Formosa Plastics Group, parent of Nanya Technology Corp., has put together a bail-out plan worth about $1 billion to keep the loss-making DRAM maker from delisting from the Taiwan stock exchange, according to local reports.
Nanya has been struggling for a number of years but the bail-out plan is being taken as evidence that the Formosa Plastics Group (FPG) is determined to stay in the semiconductor business.
Four firms within FPG – Formosa Plastics Corp., Formosa Petrochemical Corp., Formosa Chemicals & Fiber Corp. and Nanya Plastics Corp. – will provide Nanya Technology with total of NT$29.6 billion (about $990 million). The four companies will each provide NT$7.4 billion (about $247 million), the reports said.
At the same time Formosa Petrochemical has approved the lending of NT$4.8 billion (about $160 million) to Inotera Memories Inc., according to a Taipei Times report. Inotera is a joint venture between Nanya Technology and Micron Technology Inc. (Boise, Idaho).
FPG had annual sales in 2011 of $74.7 billion on which it made a profit before tax of $4.7 billion.