November 26, 2008 / 3:11 AM / in 9 years

CORRECTED - CORRECTED-UPDATE 1-Taiwan group to lend $285 mln to struggling M

Corrects with Inotera instead of references to Nanya Technology in third and fourth paragraphs (Adds details, share prices)

TAIPEI, Nov 26 (Reuters) - 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 quarters.

    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)

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