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.
This time was supposed to be different. The memorychip sector, famous for its boom-and-bust cycles, had changed its ways. A combination of more disciplined management and new markets for its products — including 5G technology and cloud services — would ensure that companies delivered more predictable earnings. Yet, less than a year after memory companies made such pronouncements, the US$160 billion industry is suffering one of its worst routs ever. There is a glut of the chips sitting in warehouses, customers are cutting orders and product prices have plunged. “The chip industry thought that suppliers were going to have better control,” said
Enimmune Corp (安特羅生技) has obtained marketing approval from the Food and Drug Administration (FDA) for its EnVAX-A71 vaccine for enterovirus 71 (EV-71), becoming the nation’s first enterovirus vaccine completely made in Taiwan, it said yesterday. After spending 13 years and NT$1.5 billion (US$49.77 million) on the research and development of the vaccine, Enimmune plans to start manufacturing and marketing it by the end of March, the company said in a statement, without disclosing customer order figures. “It is possible that the vaccine would not be included in a national vaccination program initially, and consumers would need to pay for it themselves,” parent
Hon Hai Technology Group (鴻海科技集團), also known as Foxconn Technology Group (富士康科技集團) internationally, yesterday said it was confident that its performance would improve in the second half of this year. Investment plans related to electric vehicles (EVs) in different parts of the world are expected to gradually start coming to fruition, Hon Hai chairman Young Liu (劉揚偉) told reporters after leading a new year’s prayer at the company’s headquarters in New Taipei City’s Tucheng District (土城). Major challenges stemming from the COVID-19 pandemic and the Russia-Ukraine war continue to affect the global economy. However, Liu said that he expects a turnaround in
‘BLUE OCEAN HIGHWAY’: The private cost of dredging is the main obstacle to having potentially thousands of new marine tourists make port calls, a marina operator said A company executive is betting big on marina development in Taiwan, as the government aims to boost the number of dedicated recreational yacht berths to 1,600 from 1,138 by 2025. Taiwan could make its dream of having thousands of sailboats and yachts make port calls in the country a reality by speeding up the construction of new marina berths, ARGO Yacht Club (亞果遊艇會) president Ho Yu-lin (侯佑霖) said. ARGO operates three marinas, in Kaohsiung, Penghu County and Tainan’s Anping District (安平). The 12-hectare Tainan Anping Yacht City is a members-only yacht club providing an array of amenities including restaurants and a hotel resort
RSS