China's Unigroup to pay $2 bln for stakes in 2 Taiwan chip companies (updated)

Powertech Technology

11/12/2015 10:21

(Updates with details of deal and combines ChipMOS 
announcement) 
    * Buying about 25 pct stakes in SPIL and ChipMOS Tech 
    * Deals subject to shareholder and Taiwanese govt approvals 
    * Unigroup has goal to become world's 3rd largest chipmaker 
 
    By J.R. Wu and Faith Hung 
    TAIPEI, Dec 11 (Reuters) - Two Taiwanese chip testing and 
packaging firms said on Friday Tsinghua Unigroup will buy stakes 
in them for $2 billion in total, the latest step by the Chinese 
state-backed technology conglomerate towards a goal of becoming 
a major global semiconductor player. 
    Tsinghua Unigroup is investing a total of T$68.7 billion 
($2.09 billion) for owning a quarter each of ChipMOS 
Technologies Inc  8150.TW  and Siliconware Precision Industries 
Co Ltd (SPIL)  2325.TW , the Taiwanese companies said. 
    The Chinese group's chairman told Reuters in November it     
plans to invest 300 billion yuan ($46.48 billion) over the next 
five years in a bid to become the world's third-biggest 
chipmaker.  urn:newsml:reuters.com:*:nL3N13B29S   
    Tsinghua Unigroup, which is leading China's development of a 
national semiconductor industry, has already spent $10 billion 
on mergers and acquisitions (M&As) over the past two years. 
    Friday's deals come after Tsinghua Unigroup announced in 
October a $600 million investment for a 25 percent stake in 
another Taiwanese chip test and packaging firm, Powertech 
Technology Inc  6239.TW .  urn:newsml:reuters.com:*:nL3N12U48M 
    All three deals still need respective shareholder approvals 
and are subject to review by Taiwanese authorities.  
    Tsinghua Unigroup was not immediately available for comment. 
    China's unabashed interest in foreign chipmakers in an 
already record year of deals has been quickly read by rivals as 
a sign that M&As will get more competitive and target companies 
will get more expensive.  urn:newsml:reuters.com:*:nL3N13I1GI 
    At the same time, the Chinese are chipping away at the 
semiconductor dominance traditionally held by the United States 
and Taiwan.  urn:newsml:reuters.com:*:nL3N13M32L    
    Siliconware Precision holds about a 15 percent stake in 
ChipMOS, which is majority owned by ChipMOS Technologies 
(Bermuda) Ltd  IMOS.O .  
    Tsinghua Unigroup will own 24.9 percent in Siliconware after 
a private placement worth T$56.8 billion and own 25 percent in 
ChipMOS after a separate private placement worth T$11.9 billion. 
    The acquisitions will come at a premium. Shares in ChipMOS 
closed down 0.2 percent on Friday at T$32.15, compared to the 
T$40 a share Tsinghua Unigroup will pay for them.  
    And shares in Siliconware Precision settled off 0.4 percent 
at T$45.50, compared to Tsinghua Unigroup's purchase price of 
T$55 a share.  
($1 = 32.8220 Taiwan dollars) 
($1 = 6.4538 Chinese yuan renminbi) 
 
 (Editing by Muralikumar Anantharaman) 
 ((jr.wu@thomsonreuters.com; +886 2 2500 4881; Reuters 
Messaging: jr.wu.thomsonreuters.com@reuters.net)) 
 
Keywords: SPIL TSINGHUA UNIGROUP/M&A