Samsung Austin factory needs 1b bond

Samsung disclosed Monday that its new Austin plant might require that it sell $1 billion in debt for funding. It expects to sell a five-year bond and has been talking to banks to help orchestrate the deal. The arrangement would be its first significant sale of the kind in over a decade.

The Korean firm historically prefers to use its own cash supply and, as of the start of the fall, had over $19.2 billion in its stockpile.

Details of what the Austin facility will make haven't been forthcoming, but it's believed much of its production is devoted to Apple. It may currently be the source of A5 chips for the iPad 2 and iPhone 4S, and could theoretically transition over to the A6. Apple may not be the sole customer for the plant but, even in the midst of the Android rivalry, has been one of Samsung's largest customers and can strain its manufacturing capacity.

Samsung itself will want extra capacity as it ramps up the importance of its own processors, such as the 2GHz Exynos 5250 most likely destined for future Galxay S and Galaxy Tab hardware. [via Reuters]

By Electronista Staff