08.23.2001
ProMos begins pilot run for its 12-inch fab

• Development: Promos reported a net income loss of NT$1.96bn, with negative EPS of NT$0.60 for 1H01. The firm’s 12-inch fab is currently in pilot run and expects volume production for 0.14um, 256MB SDRAM to begin in 1Q02.

• Analysis: ProMos is launching a GDR plan and we expect the effort to raise US$200m for further expansion. In the near term, Promos holds a conservative view in DRAM price rebounds. As a sign of relief, PC system manufacturers and ODM contractors are more willing to keep bigger volumes of DRAM in inventory compared to 2Q01.

• Primasia View: ProMos’s new fab is on schedule and we expect upcoming GDR issue to support remainder of expansion.