DRAM module maker A-Data Technology has signed a three-year syndicated loan for NT$3.6 billion (US$1.12 billion) from a banking consortium. The new funds will be used to secure more supplies of NAND flash and DRAM chips, and to ramp up its capacity.
A-Data chairman Simon Chen said the company is expanding capacity at its plant in Suzhou, China. It is also upgrading its existing SMT lines to high-speed ones at the Suzhou plant and its Chungho plant in northern Taiwan, Chen added.
A-Data has seen PC customers slow down inventory build-up due to Europe's debt crisis, according to Chen. Market observers are disappointed with second-quarter growth but they should realize that they are comparing it with a strong first quarter, said Chen.
In addition, Chen commented that a weaker won due to the recent tension between North and South Korea is not helping Taiwan's DRAM exports. But the impact would be short-term, he added.
Chen believes demand for DRAM modules will pick up in July-August, thanks to restocking demand for the upcoming peak season.
As for NAND flash, Chen expects Apple will start replenishing its stock of the chip by the end of June, when the market starts to be more active.