Powertech Technology (PTI), a major memory-IC packaging and testing company in Taiwan, plans to make a JPY4.1 billion (US$49.5 million) investment in EBS, a wholly-owned subsidiary of Japan's Elpida Memory, according to a company filing with the Taiwan Stock Exchange (TSE).
EBS was set up in March 2009, and is responsible for its parent company's outsourcing business.
PTI will purchase 8,200 preferred shares of EBS at JPY500,000 per unit. PTI's stake in EBS will accordingly reach 26%, equivalent to 18,200 preferred shares of the company.
Elpida is among PTI's major DRAM clients, and reportedly has placed large orders for mobile DRAM with PTI.
In addition, the board of directors of PTI has passed a proposal to raise additional capital by issuing up to 70 million new shares in the form of either a rights issue or a GDR issue.
PTI announced net profits of NT$7.65 billion, or NT$10.53 a share, on consolidated revenues of NT$37.83 billion for 2010. The company will distribute a dividend per share of NT$5, NT$4 in cash and NT$1 in stock, for its 2010 operations.