GlobalWafers Spends $4.98B To Expand Capacity

Taiwan's GlobalWafers Co. Ltd. said on Sunday, Feb. 6, that funds for a failed 4.35-billion-euro ($4.98 billion) takeover of German chip supplier Siltronic would go into capacity expansion instead, Ben Blanchard reported for Reuters.

Photo Insert: GlobalWafers Japan

GlobalWafers said it expected total capital expenditure to reach T$100 billion ($3.6 billion) between 2022 and 2024, including "substantial greenfield investments." The proceeds originally intended for the Siltronic acquisition were now earmarked for capital and operating expenses, it added.

"While the failed completion of our offer for Siltronic is disappointing, we have pursued a dual-track strategy from the very beginning of the tender offer," said CEO Doris Hsu.

"I am very excited that we can consider now a broad range of options to advance technology development and enhance our capacities."

The expansion plan includes investments in Asia, Europe, and the United States, the company said. The new production lines are expected to ramp up in the second half of next year, and be expanded quarterly, it said.

The failed acquisition comes as a global shortage of semiconductors has laid bare Europe's dependence on Asian suppliers, which has triggered recent efforts to boost production across the continent.

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