GlobalWafers Co (環球晶圓) failed to reach a breakthrough in a last-ditch bid to salvage its planned takeover of Siltronic AG, likely spelling the collapse of the US$5 billion deal.
The Taiwanese technology company did not resolve the government’s concerns during a private meeting between GlobalWafers chairwoman Doris Hsu (徐秀蘭) and German Federal Ministry for Economic Affairs and Climate Action State Secretary Udo Philipp, people familiar with the matter said.
Siltronic shares tumbled as much as 4.7 percent on the news on Friday, extending the stock’s decline for the year to more than 20 percent.
Photo: Grace Hung, Taipei Times
While the ministry continues to examine the deal, approval is not likely by tonight, when a deadline for GlobalWafers to receive all necessary approvals ends, said the sources, who asked not to be identified because the information is private.
Spokespeople for GlobalWafers and Siltronic declined to comment. A spokesperson for the German economy ministry said that the review is ongoing, declining to comment further.
The meeting was likely the Taiwanese firm’s final opportunity to convince Germany to back the deal. The company had already offered the government special voting rights via a “golden share,” as well as ways to undo the purchase or sell back key assets in Munich-based Siltronic.
GlobalWafers said on Thursday that the deal has a chance to be approved as legal options remain available to address any concerns. The statement came a day after reports that Germany is likely to allow today’s deadline to lapse without granting approval, a move that could derail the proposed deal.
Global chip takeovers have faced increasing headwinds as governments have begun to treat semiconductor technologies and supply chains as national security issues. Authorities were put on heightened alert after a prolonged shortage of microelectronics roiled the auto industry and undermined economic recoveries in the later parts of the COVID-19 pandemic.
Nvidia Corp is preparing to abandon its purchase of British chip company Arm Ltd from Softbank Group Corp after drawing backlash from regulators and making little to no progress in winning approval for the US$40 billion deal, reports said this week.
During the process, Nvidia’s bid faced a national security review in the UK.
However, other deals have managed to win approval. Chinese regulators approved Advanced Micro Devices Inc’s purchase of Xilinx Inc, clearing the way for one of the largest deals in the global semiconductor industry.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS