According to news on November 30, German silicon wafer manufacturer Siltronic AG said on Sunday local time that it is in in-depth negotiations with China Taiwan Global Wafer, which plans to acquire it for 3.75 billion euros (about 4.5 billion US dollars). This will add another blockbuster deal to a record year for the global semiconductor industry.
Siltronic said in a statement: "After the merger, the new company will become a leading giant in the wafer industry." It also said that Germany will not lose positions due to the merger before 2024. Siltronic shares have risen 48% this quarter.
Siltronic expects that Global Wafer will offer a price of 125 euros per share, which is a 10% premium to Siltronic's closing price last Friday. This price is deemed "attractive and appropriate" by Siltronic's executive board. Wacker Chemie, Siltronic's largest shareholder, holds 30.8% of the company's shares and is ready to sell its shares at the same price.
In 2016, the scale of M&A transactions in the global chip industry reached US$122 billion, the highest point in history; if the acquisition of Siltronic and International Wafer is successfully completed, the global transaction volume will reach a new high this year. The largest chip acquisition in 2016 was SoftBank's acquisition of ARM, with a transaction value of US$24 billion.
Siltronic is headquartered in Munich, Germany. It is a leading manufacturer of wafers. Its wafers can be used in smartphones, computers, navigation equipment, and digital display devices. Siltronic has production lines and offices in Germany, the United States and other developed countries. In 2019, its global revenue was approximately 1.3 billion euros (approximately 1.56 billion U.S. dollars), and its operating profit was 300 million euros. The company is listed in Germany.
Sino-American Silicon Products` major shareholder is Sino-American Silicon Products, with revenue of approximately NT$58 billion (US$2 billion) in 2019 and operating profit of NT$18 billion (US$630 million).
The two parties are expected to announce the deal in the second week of December, before the two parties still need to discuss the details and obtain board approval.