DRAM maker Nanya Technology has secured a total of NT$17 billion (US$577 million) in loans from Formosa Plastics and Nan Ya Plastics, two affiliates of its parent company Formosa Plastics Group (FPG), according to a Chinese-language Commercial Times report.
Formosa Petrochemical, another FPG affiliate, recently also agreed to provide one-year loans totaling NT$5 billion to Nanya, the DRAM maker was quoted as revealing in previous reports. The funds, expected to arrive in the first quarter of 2011, would be used on equipment purchases and a transition to 42nm process technology.
In November, Nanya also gained additional capital from FPG and members of the group through a rights issue. The DRAM maker successfully raised NT$9.9 billion.
Affected by chip price declines, Nanya's net losses widened to NT$2.27 billion in third quarter of 2010 from losses of NT$1.09 billion in the second quarter. Market watchers expect the company to remain unprofitable in the last quarter of the year.