Hsinchu, Taiwan, May 2, 2023 – Crystalwise Technology Inc. (Crystalwise, 4944:TT) and GlobalWafers Co., Ltd. (GlobalWafers, 6488:TT) held board meetings respectively today (May 2, 2023) and approved to swap shares pursuant to relevant regulations such as Business Mergers and Acquisitions Act. GlobalWafers will issue new shares as consideration payable to Crystalwise in exchange for its whole shares.
The swap ratio is every share of Crystalwise for 0.02 newly issued shares of GlobalWafers, which expects to issue 878,004 shares to Crystalwise’s shareholders. This proposal will be submitted to Crystalwise’s shareholder meeting for discussion on June 13, 2023. Once the proposal is approved by the shareholder meeting as well as the competent authorities, Crystalwise will apply for the termination of Taipei Ex trading and delist. The parties tentatively expect the share swap record date to occur on November 1, 2023.
Crystalwise is Taiwan’s first professional manufacturer of hard and brittle material substrates which supplies sapphire substrates. However, Chinese suppliers have seized the market with low prices, and product prices have plunged rapidly. Almost all domestic manufacturers have withdrawn from this industry due to long-term losses. However, after living on fumes for years, Crystalwise had to stop sapphire substrate production in 2022 due to losses, and actively implements product transformation, developing GaAs (gallium arsenide), LT (lithium tantalate), and LN (lithium niobate) wafer markets to seek sustainable operation.
LT and LN substrates are key materials for communication products. However, to successfully develop the relevant market, considerable resources need be invested to expand distribution channels and capacity. In order to protect shareholders’ rights, Crystalwise believes the share swap could deepen cooperation with GlobalWafers in improving operation and products on the foundation of GlobalWafers’ exceptional prowess in R&D and manufacturing in the traditional silicon wafers and compound semiconductor as well as its comprehensive sales network, and jointly exploring products and market application, bringing about the best solution that benefits both shareholders.
GlobalWafers is Taiwan’s largest, world’s third-largest wafer manufacturer with complete production lines and satisfies customers with superior products and service. Devoted in the semiconductor business for years with the unapparelled operation and management experience as well as the global sales network, GlobalWafers could accelerate GaAs, LT and LN wafers commercialization through business restructuring.