Taipei Fubon Bank, First Commercial Bank Co-arrange Phison's Syndicated Loan, Building a Pre-payment Financing Mechanism

(Central News Agency reporter Su Szu-Yun, Taipei, May 12) The NT$12 billion sustainability-linked syndicated loan for Phison Electronics, co-arranged by Taipei Fubon Bank and First Commercial Bank, was signed today, establishing a customized pre-payment financing mechanism for Phison. This is Phison's first syndicated loan, which received enthusiastic responses from 11 financial institutions, ultimately achieving an oversubscription rate of 224%.

Taipei Fubon Bank issued a press release today stating that the funds from this case will primarily be used to cover pre-payment for goods, repay existing financial liabilities, and supplement medium-term operating capital. Facing explosive growth in global data storage demand driven by AI applications, memory manufacturers are increasingly adopting pre-payment mechanisms to secure critical production capacity, leading the market towards an extreme seller's market.

Affected by this trend, Taipei Fubon Bank and First Commercial Bank have tailored a pre-payment financing mechanism for Phison to assist its strategic layout, using more abundant resources to strengthen medium-term capital liquidity, enhance flexibility in operating capital deployment, and meet procurement needs for the next three years. This ensures sufficient material supply even in a tight supply chain environment, laying a solid foundation for future operational expansion.

Phison, a major manufacturer of flash memory controllers and storage solutions in Taiwan, is seizing the data center storage demand brought by the expansion of AI applications. Currently, non-consumer applications contribute over 70% of its revenue, covering high-value-added markets such as servers, in-vehicle systems, and generative AI. From the beginning of 2026 to March, revenue has reached NT$41 billion, a year-on-year increase of 196%. (Edited by Pan Yi-Ching) 1150512