Chip designer VIA Technologies Inc (威盛電子) yesterday saw its shares rally 6.94 percent on renewed speculation that US chip giant Intel Corp has offered to acquire its handset chip subsidiary for US$500 million.
VIA Technologies shares jumped to NT$9.09, hitting their highest level this month, Taiwan Stock Exchange data showed.
They have dropped 22.02 percent this year, compared with the broader market’s 3.6 percent gain over the same period.
The Chinese-language Next Magazine yesterday reported that Intel and VIA Technologies are entering into final talks over the VIA Telecom Inc (威睿電通) sale.
Speculation about Intel’s interest in VIA Telecom first surfaced in November last year.
VIA Telecom is one of few band processor suppliers around the world that supports code division multiple access (CDMA) 2000 technology.
The company’s customers include South Korea’s Samsung Electronics Co and LG Electronics Co, as well as China’s Haier Group (海爾) and Lenovo Group Ltd (聯想), according to the firm’s Web site.
In collaboration with VIA Telecom, Taiwanese handset chipmaker MediaTek Inc (聯發科) in January launched a new 64-bit smartphone chip, supporting all LTE wireless technologies, including CDMA.
The Intel-VIA Technologies deal, if carried through, would inject US$250 million into the financially struggling chip company, as VIA Technologies owns 50 percent share of VIA Telecom. The new funds would mean a lifeline to VIA Technologies, as it is on the verge of being delisted from local stock market.
VIA Technologies’ net value dropped to NT$3.25 per share at the end of last year after it reported annual losses for nine consecutive years. The company is to be suspended from trading its shares on the main bourse if it remains in the red this year and drives the stock’s net value to negative territory.
Last year, the company reported net losses of NT$1.57 billion, widening from a NT$1.27 billion (US$50.11 million) loss in 2013.
“The report was simply media speculation,” VIA Technologies said in a stock exchange filing yesterday without elaborating.
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