Taiwanese semiconductor maker Nuvoton Technology Corp. is tapping international debt markets with its first overseas convertible bond offering, targeting up to $200 million in fresh capital amid falling revenue.
The company reported October revenue of NT$230 million ($7.2 million), marking a 19.38% decline from the previous year. While Nuvoton’s order backlog suggests flat fourth-quarter performance, the firm sees potential relief from stabilizing microcontroller prices and expected drops in wafer foundry costs starting early next year.
The convertible bonds will carry a face value of $200,000 each, primarily aimed at funding foreign currency purchases. This move comes as the company navigates through market headwinds while positioning for growth in specific segments.
Looking ahead, Nuvoton is betting on increased demand for its security products, driven by stricter regulations across global markets. The company is also diversifying its portfolio, with plans to begin small-scale shipments of server cooling fans using brushless DC motor technology in the first half of 2025.
The latest financial metrics and expansion plans reflect Nuvoton’s efforts to maintain market position despite current semiconductor industry challenges.
