DNeX Completes Acquisition of SilTerra From Khazanah

Dagang NeXchange Berhad has completed the acquisition of 60 per cent equity interest in SilTerra Malaysia Sdn Bhd from Khazanah Nasional Berhad making the group the majority shareholder of the semiconductor company.

This comes of the bidding process set out by Khazanah for which saw multiple parties vying for the manufacturer of semiconductor wafers and other electrical components widely used in devices.

The completion is timely as the global shortage for chips is causing price hikes and large vehicle plants to stop production, noting this Tan Sri Syed Zainal Abidin, Group Managing Director of DNeX is pleased with the finalisation of the acquisition. He noted that the entry into the semiconductor market is certainly well-timed given the current global shortage of chips affecting deliveries of cars, home appliances, notebooks, smartphones, and video game consoles, amongst others. The demand is expected to continue to rise beyond 2024 driven by the growing adoption of 5G wireless technology, IR 4.0, Internet of Things (“IoT”), cloud computing and electric vehicles.

“Together with our partner, Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) (“CGP Fund”), we are confident in our ability to transform SilTerra into a competitive global semiconductor technology player that will be able to capitalise on the strong demand for semiconductor chips globally. DNeX will focus on strengthening SilTerra’s fundamentals in terms of plant utilisation and cost optimisation while introducing a vast network of global clientele.

Post acquiring, the parent company will be focusing on the adoption of the latest semiconductor manufacturing technology and engage with other vendors in the supply chain involved in product design, manufacturing, packaging and assembly to boost local industry.

DNeX’s acquired 60 per cent stake in SilTerra at RM168.3 million and will satisfy entirely by cash. CGP Fund owns the remaining 40 per cent stake.

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