DNEX COMPLETES SILTERRA ACQUISITION, EYES GLOBAL SEMICONDUCTOR MARKET

KUALA LUMPUR, July 26  --  Dagang NeXchange Bhd (DNeX) has completed the acquisition of a 60 per cent stake in SilTerra Malaysia Sdn Bhd from Khazanah Nasional Bhd, making DNeX the majority shareholder of SilTerra.

Group managing director of DNeX Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the group is confident in its ability to transform SilTerra into a competitive global semiconductor technology player able to capitalise on strong demand for semiconductor chips globally, together with its partner Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (CGP Fund).

“Moving forward, we will focus on strengthening SilTerra’s fundamentals in terms of plant utilisation and cost optimisation while introducing a vast network of global clientele. It is time to put SilTerra on the map again,” he said in a statement today.

With the focus on adoption of the latest semiconductor manufacturing technology, DNeX expects to set in motion a positive spillover effect throughout the semiconductor value chain in Malaysia, comprising companies involved in product design, manufacturing, packaging and assembly.

DNeX’s acquisition of the 60 per cent stake in SilTerra was valued at RM168.3 million, while CGP Fund owns the remaining 40 per cent stake in the nation’s largest chipmaker.

DNeX and CGP Fund plan to pursue various initiatives to upgrade SilTerra’s equipment and manufacturing capabilities in new technologies, increase the utilisation of its foundry, optimise better product mix, and improve sales margin.

-- BERNAMA