To align with UMC’s operating plan, Wavetek’s Board of Directors approved on Dec 24, 2014 to acquire Fab 6A’s fixed assets from UMC, including equipment, fab, IP, etc. The total amount will not exceed NTD 440 million. UMC values Wavetek’s continues efforts and operational performance in GaAs business, and has therefore decided to increase its capital stake in Wavetek by NTD 100 million. The estimated total UMC holdings of Wavetek will be not more than 88%.
Through this asset transition, Wavetek aims to further solidify its future revenue foundation and strengthen its financial structure by aligning closer with market demand to better address customer requirements. Expanding Wavetek’s GaAs capacity will better serve global customers with foundry services and ample capacity to achieve corporate sustainable operations. Meanwhile, former Fab 6A CMOS product lines will remain unaffected, with all related business contracts, product manufacturing and engineering requirements still receiving full support and services. The overall transition is expected to be completed by the end of Q1 2015 and become officially effective on April 1 in the same yea