Semiconductor specialty gas supplier Taiwan Speciality Chemicals Corp (台特化) expects revenue to grow 170 percent after acquiring a major stake in semiconductor parts cleaning company Hung Jie Technology Corp (弘潔科技) in a NT$3 billion (US$100.33 million) all-cash deal, a company executive said yesterday.
The deal would give Taiwan Speciality Chemicals a 65 percent share of Hung Jie Technology, which specializes in dry cleaning advanced semiconductor chamber parts used in the etching process. Maintaining cleanliness and applying appropriate coatings are vital to prevent particle contamination and device defects.
Hung Jie Technology, established in 2008, operates three factories in Tainan, Hsinchu County and Nanjing, China.
Photo: Screen grab from Taiwan Speciality Chemicals Corp’s Web site
The company cleans semiconductor parts made by the world’s five largest semiconductor equipment suppliers, Taiwan Speciality Chemicals said.
“The acquisition of Hung Jie Technology is entirely aligning with the company’s long-term development strategy” and contributes to revenue and profit growth, Taiwan Speciality Chemicals chairwoman Doris Hsu (徐秀蘭) told a virtual news conference.
Taiwan Speciality Chemicals reported NT$874 million in revenue for last year, a spike of 58 percent from the previous year.
About 80 percent of last year’s revenue came from selling disilane, while the remaining 20 percent came from distributing other companies’ gases and related services, the company said.
Hung Jie Technology’s revenue last year was about 1.7 times of Taiwan Speciality Chemicals’ revenue, Hsu said.
The company aims to double its revenue organically every three to four years and launch one new product each year, with a goal of having its revenue outgrow its share capital, totaling NT$1.4 billion, it said.
The company expects its new anhydrous hydrogen fluoride, a highly corrosive and toxic chemical compound used in the semiconductor industry’s etching and cleaning, to drive its revenue growth this year and the next two years.
The company expects to complete the Hung Jie Technology transaction next month and plans to fund the deal half through cash and half through a syndicated loan, it said.
It would be Taiwan Speciality Chemicals’ first acquisition and the company would continue seeking suitable targets going forward, Hsu said.
Taiwan Speciality Chemicals is 30 percent owned by solar module producer Sino-American Silicon Products Inc (SAS, 中美矽晶), which also holds about a 47 percent stake in the world’s No. 3 silicon wafer supplier, GlobalWafers Co (環球晶). Hsu is chairwoman of SAS and GlobalWafers.
The acquisition would broaden SAS’ footprint across critical semiconductor materials and process support capabilities, aiming to meet rising demand for precision in advanced chip manufacturing process nodes driven by demand for artificial intelligence and high-performance computing applications, SAS said in a statement on Friday.
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