MQTech made an announcement that it had entered into a Memorandum of Understanding (MOU) with Taiwan Superconductor International Semiconductor Technology (TSIST) on August 2, for negotiation in respect of TSIST’s expressed interest to invest up to 30% equity in MQTech via participation in a forthcoming corporate exercise of MQTech.
Meanwhile, the type of corporate exercise and quantum of TSIST’s investment sum shall be negotiated and agreed upon by both MQTech and TSIST. With the proceeds from the corporate exercise, TSIST will assist and provide technical know-how to MQTech to expand its semiconductor operation in Malaysia.
The rationale of the said MoU is that it enables MQTech to leverage on technological transfer from Taiwanese experts, increases its exposure in the semiconductor industry and increases the revenue as well as shareholders’ wealth. Currently, the semiconductor market is a seller’s market due to significant market demand worldwide, and the supply of related products in the international market is not sufficient to meet the demand.
TSIST focuses on research and development of materials for high-tech industries. The strength of TSIST is in its core technologies in the manufacturing and purification processes of front-end materials: quantum materials, third-generation semiconductors and fourth-generation semiconductors, which include silicon carbide, gallium nitride, 6N ultra-high-purity quartz sand, crystal powder, crystal seeds and crystal pulling; and back-end processing and applications as well as advanced packaging processes, which include bumping, packaging, testing, nano-carbon pins and neutron carbon pins.