Tsinghua Unigroup plans nearly $2.1bn investment in Taiwanese chip packaging firms

13 December 2015 (Last Updated December 13th, 2015 18:30)

China-based Tsinghua Unigroup will be acquiring 25% interests in two Taiwanese chip packaging firms ChipMOS Technologies and Siliconware Precision Industry (SPIL) for a total investment of around $2.1bn.

China-based Tsinghua Unigroup will be acquiring 25% interests in two Taiwanese chip packaging firms ChipMOS Technologies and Siliconware Precision Industry (SPIL) for a total investment of around $2.1bn.

The state-owned company will be investing TWD$56.8bn ($1.7bn) in SPIL and TWD$11.97bn ($364.2m) in ChipMOS Technologies.

The firm will be holding 25% stakes in each of the companies following the two transactions.

"It will be very beneficial to SPIL's competitive positions in both the mainland China and the global markets."

As a part of the strategic deal with ChipMOS Taiwan, the parties will also fortify their long-term cooperative association.

The board of directors at ChipMOS had set up a special committee for evaluation of the share transaction and the merger of the parent company into its subsidiary ChipMOS Taiwan.

The private placement still awaits ChipMOS Taiwan shareholders' approval along with other regulatory approvals in the country.

Currently owning 58% of ChipMOS Taiwan unit, the parent firm will own a 43.7% stake in the unit after the transaction is closed, while the agreement with SPIL will entitle Tsinghua Unigroup to own 1.033 billion new shares of the Taiwanese company at TWD$55 a share.

Expected to be over by next June, the deal indicates a 33% dilution in existing shares, reports Bloomberg.

SPIL chairman Bough Lin said: "With this strategic alliance, SPIL will not only solidify relationships with our existing customers, but will also be able to provide IC packaging and testing services to Unigroup's existing and future portfolio companies in the semiconductor industry.

"As Unigroup continues to build and expand its footprint in the global semiconductor value chain, it will be very beneficial to SPIL's competitive positions in both the mainland China and the global markets."