Second Taiwan chip firm shareholders OK plan for partial sale to Tsinghua Unigroup

Powertech Technology

28/01/2016 03:57

HSINCHU, Taiwan, Jan 28 (Reuters) - Shareholders of ChipMOS 
Technologies Inc  8150.TW  on Thursday approved a plan for 
China's state-backed Tsinghua Unigroup to take a quarter stake 
in the Taiwanese chip test and packaging company. 
    That would mark the second go-ahead of three deals worth 
$2.6 billion planned by the Chinese giant to enter into the 
island's chip supply chain. 
    The approval, which was expected, comes on the heels of 
national elections that brought to power the 
independence-leaning Democratic Progressive Party (DPP) after 
eight years under China-friendly President Ma Ying-jeou. 
    The plan still has to win regulatory approval. 
President-elect Tsai Ing-wen of the DPP, who takes office in 
May, earlier indicated Chinese investments would come under more 
scrutiny in future.  urn:newsml:reuters.com:*:nL3N1442KB 
    Tsinghua Unigroup plans to invest T$11.9 billion ($354.11 
million) in a quarter stake in ChipMOS Technologies, the two 
companies said last month.  urn:newsml:reuters.com:*:nL3N1403BT 
    The proposal is now expected to be submitted to Taiwanese 
regulators for review after the Lunar New Year holiday in 
mid-February, ChipMOS Chairman S.J. Cheng told reporters after 
shareholders voted to approve the deal. 
    He added that the review could take 2-4 months to complete. 
    Cheng said the fresh fund injection, if given the regulatory 
nod, would go towards increasing ChipMOS' production, and 
research and development in Taiwan, as well as China expansion 
plans.  
    Earlier this month, shareholders of Powertech Technology Inc 
 6239.TW , another Taiwanese chip test and packaging firm, 
approved a similar partial stake sale to the Chinese giant, 
while a third Taiwanese chip firm, Siliconware Precision 
Industries Co  2325.TW , has yet to take its plan to shareholder 
vote.  urn:newsml:reuters.com:*:nL3N14Z28P 
($1 = 33.6050 Taiwan dollars) 
 
 (Reporting by J.R. Wu; Editing by Ryan Woo) 
 ((jr.wu@thomsonreuters.com; +886 2 2500 4881; Reuters 
Messaging: jr.wu.thomsonreuters.com@reuters.net)) 
 
Keywords: CHIPMOS TSINGHUA UNIGROUP/