Handset chip designer MediaTek Inc (聯發科) plans to fully acquire broadband chip supplier IC Plus Corp (九暘電子) for NT$1.51 billion (US$52.94 million) through one of its subsidiaries, the company said on Sunday.
Airoha Technology Corp (絡達科技), a MediaTek subsidiary, has offered to buy all 68.55 million shares of IC Plus at NT$22 per share, MediaTek said in a regulatory filing.
The figure represents a 15.8 percent premium on IC Plus’ closing price of NT$19 on Friday.
Photo: David Chang, EPA-EFE
IC Plus yesterday rose by the daily limit of 10 percent to NT$20.9 on the Taipei Exchange.
The deal “will help the company develop broadband communications chips and related products, and enhance the company’s competitiveness. The transaction will have a positive impact on the company’s business,” MediaTek said in the filing.
IC Plus, which makes chips used primarily in Ethernet transceivers or switches, would see its shares delisted from the exchange upon the completion of the transaction.
The deal is subject to the approval of shareholders at an extraordinary meeting on Feb. 23.
IC Plus swung into a loss of NT$997 million in the first three quarters of this year, compared with a net profit of NT$157 million in the same period last year.
That translated into losses per share of NT$1.48 in the first three quarters, compared with earnings per share of NT$2.34 a year earlier.
This is the third acquisition launched by MediaTek this year.
Two weeks ago, the company announced plans to acquire a 20 percent stake, or 12.4 million shares, in Asix Electronics Corp (亞信電子) at NT$40 per share through a private placement.
Asix specializes in supplying chips used in high-speed Internet cards.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS