DNEX'S SILTERRA INKS US$400 MLN SUPPLY AGREEMENT WITH CHINA'S CHIPONE TECHNOLOGY

KUALA LUMPUR, Aug 4 -- Dagang NeXchange Bhd's (DNeX) subsidiary, SilTerra Malaysia Sdn Bhd, has entered into a wafer supply and purchase agreement with ChipOne Technology (Beijing) Co Ltd worth US$400 million (US$1=RM4.22).

In a statement today, DNeX said under the multi-year agreement, SilTerra would supply wafers used in the production of semiconductor devices to ChipOne Technology, China’s leading driver integrated circuit (IC), touch controller and fingerprint sensor fabless integrated circuit design house.

Group managing director and SilTerra executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the agreement would also see SilTerra having a guaranteed wafer base load for the next several years and ensure a high factory utilisation rate for the company going forward.

“We are pleased for SilTerra to enter into this agreement with one of the leading semiconductor chip design companies in China. This also shows the commitment of the new shareholders of SilTerra in transforming the company through driving sustainable business.

“IC designers are striving to deliver energy efficient products and this is aligned to strategies towards energy conservation and sustainability. As such, they look to adopt the smart power design techniques as well as advanced power technologies to meet this objective,” he said.

He added that SilTerra would also be leveraging on its proven process technology, foundry design kits and intellectual property to deliver optimum energy efficient products.

DNeX recently completed the acquisition of 60 per cent equity interest in SilTerra from Khazanah Nasional Bhd, making the company the majority shareholder of SilTerra.

-- BERNAMA