2014/03/14
March 14th, 2014 – Vanguard International Semiconductor Corporation (VIS), Nanya Technology Corp. (Nanya Technology) and Sumpro Electronics Corp. (Sumpro) jointly announced on March 14, 2014 that the boards of VIS, Nanya Technology and Sumpro approved VIS’ acquisition of the Fab owned by Nanya Technology while currently leased by Sumpro Electronics Corp., located in Taoyan County and approved VIS’ acquisition of Sumpro’s equipment and spare parts and inventories. The transaction amounts to approximately NT$ 2.18 billion. The purchase will be completed on July 1st, 2014.
The boards of VIS approved to appropriate NT$ 400 million to acquire the fab owned by Nanya Technology including eight buildings. The boards of VIS approved to appropriate NT$ 1.78 billion to acquire equipment and spare parts and inventories (The transaction value of inventories will be confirmed in written by both parties base on the actual transferring volume on July 1st, 2014) from Sumpro. VIS, Nanya Technology and Sumpro have reached consensus that VIS and Sumpro will well arrange the career of Sumpro’s existing employees. VIS will quickly allocate engineering resource to the fab to streamline the transition of operation and will continue to provide the foundry service to Sumpro’s customers.
Mr. Charles Kau, Chairman of Sumpro Electronics and President of Nanya Technology, commented, “to integrate Sumpro's past experiences in Memory, Driver IC and Power Devices with Vanguard International Semiconductor (VIS)'s outstanding manufacturing capability and economy of scale, we believe this strategic alliance will further create the synergistic value. Regarding the career of Sumpro’s employees, the company will make all the effort to arrange it appropriately.”
Mr. C.C. Chang, chairman of VIS expressed his gratitude to the boards of Sumpro and Nanya Technology for their support of this transaction which allow VIS to obtain capacity advantages, capture business opportunities and reinforce growth momentum. Mr. Leuh Fang, president of VIS emphasized that he has confidence to satisfy customers’ production and technology demands, enhance the long-term relationship with customers, continue to grow and improve profitability steadily. The transaction will be of benefit to all the shareholders, customers, and employees as a whole. He also expressed his appreciation for all the efforts made by Sumpro’s and Nanya Technology’s management team to conclude the transaction smoothly.
VIS has two successful experiences in transforming its DRAM fabs into a foundry service provider and dedicated to the foundry of Display Driver IC, Power Management System, Ultra High Voltage, SOI, Discrete. VIS has been frequently fully loaded since 1Q13, and hardly met the customers’ request for more capacity. With this acquisition, VIS will further expand its 8-inch wafer capacity, and expect to increase around 400 thousand wafers per year. This acquisition offers growth opportunity both for VIS and its customers.
Sumpro Electronics Corporation, adopting advanced process technology and equipments of 200 mm fabrication, assumed the assets, experiences and business of Nanya former Fab 1, dedicating in DRAM and Non-DRAM foundry service, with process technologies from 65nm to 130nm, provides not only diversified power semiconductor solutions (includes Trench MOSFET / HVMOSFET), but also specialty DRAM and Flash foundry product lines. Sumpro current capital is approximately at NT$ 2.451 Billion.
Nanya Technology Corporation, a member of the Formosa Plastics Group, is industry leading pure-play consumer Memory Company, focusing on research and development, design, manufacturing, and sales of consumer and Low Power DRAM products. Nanya plans to enlarge market share in the high value-added DRAM market segment. NTC’s common stock is traded on the Taiwan Stock Exchange Corporation (TWSE) under the 2408 symbol. The company currently owns 300mm fabrication facility in Taiwan and its 30nm stack process technology has reached over 70 percent in the first quarter of 2014. The company also has a 300mm joint venture, Inotera Memories, Inc., which operates two 300mm fabrication facilities in Taiwan. Further information is available at http://www.nanya.com
Vanguard International Semiconductor Corporation (VIS) is a leading specialty IC foundry service provider. VIS has been established in December 1994 in Hsinchu Science Park, Taiwan. VIS currently has two 8-inch fabs which has a monthly output of approximately 137,000 wafers. VIS offers a wide range of process technologies, including High Voltage, Ultra High Voltage, Bipolar CMOS DMOS (BCD), Discrete, SOI (Silicon on Insulator), Logic, Mixed-Signal to further help increase its foundry customers’ global competitiveness. For more information, please visit the company’s website: www.vis.com.tw