Samsung to borrow 1 Billion US dollars to expand capacity in Texas
Samsung Semiconductor makes main processor chips for iPhones, iPad’s and many other tablets and smartphones from other vendors including Samsung Mobiles. To meet with the exceeding demand for these products the supply of the said chips needs to be in order. Bloomberg is reporting that Samsung Semiconductor has “sent requests for proposals to banks to borrow as much as $1 billion to expand production capacity at its factory in Austin, Texas,” with the bonds to be issued by Samsung’s United States unit.
The company which is about US $ 20 Billion cash rich will sell its bonds first time since 1997, due to the low borrowing rate. The company plans to utilize this money to boost production of mobile phone processor and GPU chips as well as invest in innovation in their OLED manufacturing.