Taiwan-based semiconductor design firm Silicon Motion Technology said on Friday it has closed a $1.15 billion convertible notes offering.
The company said the notes have a maturity of five years and an annual interest rate of 1.5%, with an option for noteholders to convert the debt into equity at a fixed price. Proceeds will be used for general corporate purposes, including working capital and potential acquisitions, Silicon Motion stated in a filing.
Convertible notes are a hybrid financing instrument that allows issuers to raise capital at lower interest costs compared with traditional debt, while offering investors the upside of equity conversion if the company's shares appreciate. The offering underscores Silicon Motion's access to deep capital markets amid ongoing investment in AI and automotive chip development.
Silicon Motion, which supplies controllers for NAND flash memory used in SSDs and other storage devices, has expanded its focus into AI inference accelerators and automotive-grade chips in recent years. The company did not disclose the final pricing or allocation details in the filing.
