Memorychip designer AP Memory Technology Corp (愛普科技) said it is to launch a NT$985 million (US$31.07 million) cash takeover bid for local rival Zentel Electronics Corp (力積電子) to expand into the Internet of Things (IoT) market.
The offer is the latest in a slew of mergers and acquisitions in the nation’s semiconductor industry, topped by a NT$128.7 billion acquisition bid by Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) to absorb rival Siliconware Precision Industry Co (SPIL, 矽品精密).
ASE, the world’s largest chip tester and packager, is awaiting the approval of fair-trade authorities around the world before it can proceed with the transaction.
“AP Memory focuses on developing memory chips used in communications electronics, while Zentel has been good at developing niche memory chips for consumer electronics, networking devices and computer-related devices,” AP Memory chairman Brian Hsieh (謝再居) told a media briefing on Friday night.
“The two companies complement each other in terms of market segments,” Hsieh said. “The combination of the two companies’ research and development teams in Japan, the US and Taiwan would help us explore new business opportunities in the IoT market.”
AP Memory supplies its new low-power memory chips to handset chip designers MediaTek Inc (聯發科) and China’s Spreadtrum Communications Inc (展訊) for mid and low-end smartphones. The company’s largest revenue source is pseudo SRAM chips used in smartphones.
RESEARCH AND DESIGN
A tie-up with Zentel would significantly boost the company’s revenues, as it would help expand research and design capabilities as well as broaden chip portfolios and sales channels, AP Memory said.
AP Memory’s revenue next year might double from last year’s NT$2.6 billion if the acquisition deal is completed next year as planned, the firm said.
Zentel also made NT$2.6 billion in revenue last year, according to the company’s financial statement submitted to the Taiwan Stock Exchange.
AP Memory is offering to buy all outstanding common shares of Zentel at NT$14.5 per share, which would represent a 15.54 percent premium on Zentel’s closing price of NT$12.55 on Friday last week on the Taipei Exchange.
AP Memory plans to buy 50 percent of Zentel shares in the first of a planned two-stage acquisition process from tomorrow through Oct. 25.
AP Memory’s net profit soared 44.49 percent to NT$187.8 million in the first half, compared with NT$129.97 million in the same period last year, the company’s financial statements showed.
Gross margin improved to 36.48 percent in the first half from 35.04 percent in the same period last year, company data show.
Revenue increased 11.3 percent to NT$1.28 billion in the first half from NT$1.15 billion in the same period last year, the data show.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and