Win Semiconductors Corp (Win Semi, 穩懋半導體), the world’s largest pure-play gallium arsenide foundry, yesterday said that it plans to spend NT$2.12 billion (US$76.42 million) to increase its stake in Iteq Corp (聯茂), aiming to expand the two firms’ partnerships to 5G infrastructure and autonomous vehicles.

Win Semiconductors is planning to acquire about 16.34 million shares of Iteq at NT$130 per share through a private placement, the Taoyuan-based company said in a statement submitted to the Taiwan Stock Exchange.

The move would increase Win Semiconductors’ stake in Iteq to 17.08 percent from 12.81 percent.

Iteq manufactures copper-clad laminates, a material used in the printed circuit boards installed in networking devices, consumer electronics, vehicles and smartphones, the company’s Web site said.

The deal is part of a NT$6.5 billion fundraising plan by Iteq that includes the issuance of 500 million new shares, Win Semiconductors said, adding that Iteq plans to use the funds to repay bank loans and replenish operating capital.

Win Semiconductors is the biggest stakeholder in Iteq, with Dennis Chen (陳進財) chairing both firms.

Win Semiconductors said that it would not rule out the possibility of deepening its partnership with Iteq as the two firms are diversifying their businesses to 5G infrastructure equipment, networking and self-driving light-detection-and-ranging (LiDAR) sensors, Win Semiconductors spokesman Joe Tseng (曾經州) told an online media briefing.

In July, Win Semiconductors told investors that it expects high single-digit percentage revenue growth this quarter from NT$6.2 billion last quarter, driven by higher 5G smartphone penetration, as well as demand for 3D sensing components and LiDAR applications.

Gross margin would likely remain near the 35.7 percent it posted last quarter, the company said.


●Origin：Taipei Times
●Link：https://www.taipeitimes.com/News/biz/archives/2021/09/02/2003763625