Monday, May 4, 2009

Spreadtrum Gains $44 Million China Bank Loan for Baseband Chipsets

Spreadtrum Communications, a supplier of wireless baseband chipsets for China, announced that its Chinese subsidiary received RMB 300 million (approximately $44 million) of new financing from a Chinese bank in the form of a 3-year fixed term loan.Interest on borrowings will be initially set at 5.4% annually, to be reset annually at the then benchmark applicable rate as set by the People's Bank of China.

"This indicates the Chinese government's strong support and high confidence in Spreadtrum to develop semiconductor products in 2nd and 3rd generation wireless communications in the Chinese market. We plan to use our borrowings under the loan to increase R&D investment in our GSM and TD-SCDMA projects and to expand our IC operations in China," said Dr. Leo Li, president and CEO of Spreadtrum Communications.

See also