Ailing Sarawak-based RM3.8-billion wafer fab manufacturing concern 1st Silicon (Malaysia) Sdn Bhd has raised new financing totaling RM2.33 billion in both equity and credit "to purchase equipment to bring its manufacturing facility up to capacity levels".

This was disclosed by the company's recently-appointed chief operationg officer Dr John Nelson in a press statement released late last night.

"The additional equity gives 1st Silicon the capability to meet and exceed customer requirements through providing support infrastructure and continuous technology development efforts, essential to serve its global customer portfolio."

Of the RM2.33 billion raised, RM1.1 billion is additional equity raised since January 2002 thus increasing the company's paid-up share capital from RM1.2 billion to RM2.329 billion.

"The additional equity gives 1st Silicon the capability to meet and exceed customer requirements through providing support infrastructure and continuous technology development efforts, essential to serve its global customer portfolio," Nelson said.

Loan guaranteed by government

The other portion of the company's funding is represented by two credit facilities amounting to RM1.23 billion, which will also be used for the purchase of semiconductor manufacturing equipment.

The credit facilities consist of RM456 million sourced from Japan Bank of International Corporation (JBIC) and related commercial banks, and RM775 million from United States Export Import Bank and related funding institutions.

"Both new credit facilities are guaranteed by the Malaysian government. The company still has a balance of US$36.5 (RM138.7) million available for equipment purchases from an earlier United States Export Import Bank guaranteed facility," Dr Nelson said.

1st Silicon's chief financial controller Ramly Ahmad said: "Continued expansion is essential to meeting the manufacturing capacity and capabilities that our customers expect from their fabrication facility".

Workforce increased

1st Silicon is a dedicated semiconductor foundry founded in 1998 by Sarawak state government and its 200mm wafer fab has a capacity in excess of 30,000 wafers per month when fully ramped.

Headquartered in Kuching, the company's customers include Integrated Device Manufacturers and Fabless Semiconductor companies from the US, Japan, and Asia.

Meanwhile, contrary to market talk of a substantially scaled-down workforce, a company spokesman said the wafer fab one of two in Malaysia (the other is in Kulim, Kedah) has a total workforce of about 900, up from about 750 last year.

The slowdown in the global semiconductor market over the past years has adversely affected 1st Silicon.