Taiwan semiconductor firm inks MoU with MQ Tech to acquire up to latter's 30% stake

Taiwan semiconductor firm inks MoU with MQ Tech to acquire up to latter's 30% stake
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KUALA LUMPUR (Aug 2): MQ Technology Bhd has inked a memorandum of understanding (MoU) with Taiwan Superconductor International Semiconductor Technology Co Ltd (TSIST) 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.

However, it did not disclose the sum of the investment.

“The type of corporate exercise and quantum of TSIST’s investment sum shall be negotiated and agreed upon by the parties,” said MQ Tech in a filing with Bursa Malaysia.

The MoU is for a period of six months and both parties are expected to sign a definitive agreement within that period.

In a separate filing, MQ Tech Managing Director Tong Sian Shyen said given the current market demand, the collaboration with TSIST is timely for MQTech to extend its market reach in the semiconductor sector.

“TSIST would enable MQTech to leverage on technological transfer from Taiwanese experts, increase its exposure in the semiconductor industry and increase 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,” Tong said.

According to Tong, fuelled by new tech applications like 5G, AI, cloud computing, and the Internet of Things (IoT), as well as a surge in demand for consumer electronics, AI automotive and digital services during the Covid-19 pandemic, MQTech is seeing continued strong growth of the semiconductor industry, both globally and locally.

TSIST Chief Executive Officer Professor Liu Chien-Lung said TSIST has all the technology know-how to enable technology transfer.

“Our key personnel are senior engineers and industry experts from giant semiconductors companies such as Taiwan Semiconductor Manufacturing Co Ltd and Huawei Technologies Co Ltd,” Liu highlighted.

Liu added that MQTech and TSIST should collaborate and invest more in the lucrative semiconductor manufacturing facilities, especially the higher margin segment.

“TSIST would not want to miss out on this golden opportunity to participate in the equity interest in this semiconductor venture and would like to invest up to 30% stake in MQTech,” Liu concluded.

TSIST is a company focusing 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 such as quantum materials, third-generation and fourth-generation semiconductors.

The company is also involved in back-end processing and applications, as well as advanced packaging processes such as bumping, packaging, testing, nano-carbon pins and neutron carbon pins.

Shares in MQ Tech rose 14.29% to four sen on Tuesday (Aug 2), from 0.35 sen. At four sen, it has a market capitalisation of RM50 million.  

Esther Lee