Feeds

UMC bond sale raises $302m

Nvidia deal fuels investor interest

  • alert
  • submit to reddit

Top three mobile application threats

UMC's attempt to raise cash selling convertible bonds yesterday proved more successful than it had anticipated with the sale more than 17 times oversubscribed and the bonds changing hands for 40 per cent more than the 4 December closing price of previously offered American depositary receipts.

The sale netted UMC $302 million. The company won't say what it plans to do with the cash.

We're not sure whether the success of the sale is, as some analysts have suggested, a sign that the world chip market is beginning to rebound, but it's clear that a lot of investors think it is and figure UMC, the world's second largest chip foundry, is going to be one of the winners.

All this interest in UMC follows its arch-rival, TSMC's announcement that its full-year earnings will be 55 per cent higher than it previously forecast, thanks to a big rise on orders during the current quarter, its fourth. TSMC is the world's largest foundry and now expects to announce pre-tax profits of $271 million.

But we'd suggest that recent reports suggesting that Nvidia has signed UMC to produce chips, possibly for Microsoft's Xbox console, has more to do with the success of the sale than the example set by TSMC. Nvidia has largely maintained its share value throughout the year despite the massive dips in price its fellow hi-tech players have experienced. Nvidia is clearly a respected operation - by Wall Street, at least - and its opinion counts. If it thinks UMC is worth signing - particularly since its relationship with TSMC is so tight - investors see that as a sign they should get involved too.

In contrast to TSMC's profit, UMC is expected to post a loss of $92.8 million for 2001 as a whole. ®

Related Story

UMC wins Xbox chip supply contract

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.