Corrects with Inotera instead of references to Nanya
Technology in third and fourth paragraphs
(Adds details, share prices)
TAIPEI Nov 26 Two units of Formosa Plastics
Group will lend a combined $285 million to struggling U.S. DRAM
maker Micron Technologies MU.N, the companies said, following
their recent partnership in a joint venture.
Nan Ya Plastics Corp (1303.TW) would provide a $200 million
loan, while sister firm Inotera 3474.TW, itself a DRAM maker,
would give $85 million, the companies said in separate statements
released through the stock exchange late on Tuesday.
Micron Technology shares rose 7.62 percent in New York after
the news, easily outpacing a 0.5 percent decline for the
tech-heavy Nasdaq .IXIC. Inotera shares also jumped, and were
up 6.8 percent in early Wednesday trade in Taiwan, outpacing a
0.95 percent gain for the broader market .TWII.
The Formosa Plastics units announced the loans just more than
a month after Nanya Technology (2408.TW), another Formosa
Plastics unit, and Micron said they would strengthen their
alliance by becoming joint venture partners in Inotera.
In that deal, Micron said it would buy out the 35.6 percent
Inotera stake held by European DRAM maker Qimonda QI.N for $400
million. Nanya Technology was already Inotera's main shareholder
at the time of that announcement.
Taiwan media reported the $285 million in loans from the two
Formosa Plastics units was part of a broader commitment to lend
Micron $335 million as part of the earlier deal.
Analysts said Micon's buyout of the Qimonda stake was
designed to help the struggling U.S. chipmaker gain scale and
reduce costs in the volatile DRAM market and to strengthen its
relationship with Nanya.
Micron and Nanya had already signed an agreement this year to
set up a new chip joint venture, MeiYa, which could lead to
Micron replacing Qimonda as Nanya's advanced technology partner.
DRAM makers in Taiwan and abroad have struggled this year
amid one of the worst downturns ever for the highly cyclical
industry, with most major players reporting big losses in recent
Last month, Micron reported its quarterly net loss doubled to
$344 million, which was worse than expected, as sales slowed and
prices fell in the memory chip supply glut.
(Reporting by Doug Young; Editing by Nick Macfie)