Taiwan LED maker Huga Optotech has signed a NT$ 2 bn. syndication loan agreement with Hua Nan Commercial Bank. Taiwan Cooperative Bank, Industrial Bank of Taiwan, Mega International Commercial Bank, Chang Hwa Bank, and The Shanghai Commercial & Savings Bank, also financed the deal.

The credit line is reserved for funding Huga's capital expenditure on fab. 3 construction in Central Taiwan Science Park (CTSP). It is expected that fab 3 will become operational in the second half of 2008 and thus gear up more than double its current capacity.

Huga expect that handheld devices, car electronics and flat panel display will create further demand in the LED industry and take the market to next new highs.