In strong support of Taiwan’s silicon wafer industry, the bank has arranged a seven-year ESG-linked syndicated loan for Wafer Works, totaling NTD2.76 billion. The loan was oversubscribed by 184%, reflecting the confidence of domestic banks in Wafer Works' operations. On October 15, 2024, the bank’s General Manager, Chih-Chien Chang, represented the syndicate in signing the credit agreement with Wafer Works' Chairman, Ping-Hai Chiao.
Since 2019, the Executive Yuan has promoted the “Three Major Programs for Investing in Taiwan.” As of August 2024, 1,518 companies have been approved under these programs, with total investments reaching NTD2.3 trillion, creating 153,000 jobs. This initiative has driven investments in Taiwan’s silicon, AI, and electric vehicle industries, with companies like Wafer Works enthusiastically responding.
Wafer Works, the world’s sixth-largest silicon wafer supplier and one of the top three providers of low-resistivity heavily-doped wafers, has repeatedly applied under the “Three Major Programs for Investing in Taiwan.” This year, the company increased its investment by NTD17.3 billion to establish a new plant in the Erlin campus of the Central Taiwan Science Park, targeting the 12-inch wafer market for automotive power devices and power management chips to boost revenue.
In addition to offering comprehensive R&D, manufacturing, and sales services for semiconductor silicon wafers, Wafer Works is also a model of environmental sustainability. The new Erlin plant will include solar power systems, reclaimed water, and waste recycling facilities, aligning its green manufacturing goals with the bank’s commitment to green finance.
To support Wafer Works' continued investment in Taiwan, with a focus on environmental sustainability, the bank proactively took the lead as the arranger for this syndicated loan, inviting eight other financial institutions to participate: Taiwan Cooperative Bank, First Commercial Bank, Bank of Taiwan, Hua Nan Bank, Chang Hwa Bank, Taipei Fubon Bank, Taiwan Business Bank, and Entie Commercial Bank. Initially, the loan amount was set at NTD2.3 billion to refinance existing loans, but due to strong participation from the banks, the final amount reached NTD4.24 billion, demonstrating the banks' confidence in Wafer Works' business prospects.
Furthermore, to encourage Wafer Works to implement green manufacturing, the bank incorporated ESG sustainability measures into the loan terms. By meeting specific targets, the company will be eligible for preferential interest rates, fully embodying the principles of green finance.
In 2024, under the theme “Leading Green Finance, Spreading Wings for Sustainability and Prosperity,” the bank has actively pursued credit agreements with leaders in the circular economy and sustainable energy industries. The bank has promoted sustainable loan programs such as “Low-Carbon Transition and Smart Upgrades Loans,” “Green Building Financing,” and “Renewable Energy Equipment Loans – Green Power, Green Profits Marketing,” helping enterprises seize green energy opportunities. The bank aims to guide corporate partners and individual clients toward sustainability, creating a financial ecosystem where banks, society, and the environment thrive together.
Contact: Tzu-Chen Yang
Tel.: 02-2348-3391
