GlobalWafers said on Nov. 3 that its board approved a major strategic financing plan to issue up to $500 million in privately placed unsecured domestic convertible bonds, with Micron Technology acting as the sole subscriber for the entire offering.
The bonds will have a 10-year tenor and a 0.5% annual coupon. GlobalWafers said the financing will be tied to a 10-year long-term agreement, or LTA, between the two companies, under which it will provide a stable supply of advanced semiconductor silicon wafers to support demand for high-end memory used in AI, high-performance computing, and data centers.
Micron to take full $500 million private CB issue
According to GlobalWafers’ filing, the main terms of the private placement are:
- Issue size: up to $500 million, with a face value of $1,000 per bond
- Tenor and coupon: 10 years, with a 0.5% annual coupon rate
- Issue price: no lower than 80% of the theoretical price
- Specific subscriber: Micron Technology will subscribe to the full amount
- Strategic purpose: to strengthen U.S. local manufacturing and AI memory materials deployment
GlobalWafers described the transaction as an important milestone in its strategic cooperation with Micron. The company said Micron’s investment will provide a low-cost, long-term funding source for the expansion of its U.S. business as wafer manufacturing shifts toward localization.
It also said privately placed securities are subject to a three-year lock-up period and cannot be freely transferred during that time. In the company’s view, that structure helps reinforce a long-term partnership between a key materials supplier and its customer, while supporting stable capacity utilization and market share.
First three quarters EPS reaches NT$15.00
Alongside the financing announcement, GlobalWafers disclosed preliminary financial data for the first three quarters of year 115:
- Cumulative operating revenue: NT$44.07 billion
- Cumulative gross profit: NT$9.024 billion, with gross margin of about 20.48%
- Cumulative operating income: NT$4.352 billion, with operating margin of about 9.87%
- Net profit after tax attributable to the parent: NT$7.176 billion
- Earnings per share: NT$15.00
The company said that despite adjustments in demand conditions for mature semiconductor process nodes, it still delivered earnings exceeding one and a half times paid-in capital over the first three quarters. Total assets at period-end were NT$301.636 billion, while shareholders’ equity stood at NT$145.868 billion.
Board approves NT$6.0 cash dividend per share for first half
GlobalWafers also approved an earnings distribution plan for the first half of year 115, setting a cash dividend of NT$6.0 per share. Total cash distribution will amount to NT$3.169 billion.
The dividend schedule is as follows:
- Ex-dividend trading date: Dec. 29 of year 115
- Last date for share transfer registration: Dec. 30 of year 115
- Book closure period: Dec. 31 of year 115 to Jan. 4 of year 116
- Ex-dividend record date: Jan. 4 of year 116
- Cash dividend payment date: Jan. 22 of year 116
