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GlobalWafers Agree to Purchase Siltronic to Become Leader in Silicon Wafer Market
10.12.2021 [07:42],
Alexey Razin

Information about the intentions of the Taiwanese company GlobalWafers to buy the German competitor Siltronic appeared at the end of November, the parties expected to complete the deal by mid-December. In fact, they got ahead of their own plans by announcing a final deal this Wednesday.

Image source: Bloomberg

As noted by Bloomberg, the deal will take place on the terms agreed at the end of November. GlobalWafers will pay Siltronic 125 euros per share, which is 10% higher than the stock exchange rate recorded at the close of trading on November 27 this year. The buyer will have to pay a total of $ 4.53 billion. The German side achieved guarantees of preserving production and jobs in Germany until the end of 2024. In total, before the merger, the two companies had 20 enterprises in 10 countries of the world.

According to the head of GlobalWafers Doris Hsu, the acquisition of Siltronic assets will allow the first of the companies to strengthen its position in the segment of power electronics, components for equipment for 5G networks and the Internet of Things. Together, companies can also move forward in materials science. The closing of the deal should take place in the second half of next year, after all approvals from the regulatory authorities.

Some analysts believe that GlobalWafers, after the acquisition of Siltronic, could become the largest silicon wafer manufacturer in terms of revenue, with a market share of 32 to 35%. Prior to this deal, Siltronic was a leader in the supply of silicon wafers for the production of components used in smartphones, personal computers, navigation devices and displays. Siltronic reaches € 1.9 billion in 2021. GlobalWafers gained about $ 2 billion during the same time.