Etron Technology, which supplies niche memory chips used in LCD TVs, mobile phones and other consumer products, has obtained approval to expand its capital through issuing new shares and unsecured convertible bonds, according to the company.
Etron expects to raise about NT$250 million (US$7.9 million) through a rights issue, based on a tentative per-share price of NT$20. It did not disclose an estimated amount that will be raised from the bond issue.
Etron reported revenues of NT$903 million for April 2010, up 16.8% on month. Accumulated revenues through the month totaled about NT$3.2 billion, a 83.8% rise from 2009.
Industry watchers expect Etron's gross margin for the second quarter to grow from 18.25% generated in the first, thanks to more stable foundry costs.