GlobalWafers Reports 2020 Results

Hsinchu, Taiwan —GlobalWafers held its board meeting today (March 16, 2021) to approve 2020 financial results. FY2020 consolidated revenue reached NT$55.36 billion. Due to strong appreciation of the New Taiwan Dollar, FY2020 revenue compared to FY2019 decreased by 4.71%. If calculated in US Dollars, FY2020 revenue would be close to FY2019 revenue, with only a slight decline of 0.26%; gross profit of NT$20.57 billion, gross profit margin of 37.2% with YoY decrease of 2.1%; operating income of NT$15.29 billion, operating income margin of 27.6% with a YoY decrease of 3.2%; pre-tax income of NT$16.62 billion, pre-tax income margin of 30.0% with a YoY decrease of 1.9%; net income of NT$13.10 billion, net income margin of 23.7% with a YoY growth of 0.2%; EPS of NT$30.11.

GlobalWafers revenue and shipment continued to grow sequentially despite the world economy was devastated by COVID-19. FY2020 revenue, gross profit, operating income, pre-tax income and net income achieved the third highest in the history; furthermore, net income margin was the best ever since establishment! GlobalWafers’ Annual General Shareholder Meeting will be convened at 9 a.m. on June 22 at the Hsinchu Science Park Life Hub, Taiwan.

Regarding GlobalWafers’ voluntary public takeover offer for all of the outstanding shares in Siltronic AG, the additional acceptance period ended on March 1, 2021, with GlobalWafers successfully achieving a final acceptance level of 70.27%. GlobalWafers continues to expect the closing of the transaction in the second half of 2021, subject to receipt of required merger control and foreign investment approvals. As of the date of this release, the German Federal Cartel Office, the Austrian Federal Competition Authority and the Committee on Foreign Investment in the United States (CFIUS) have given their clearance.

Taiwan Ratings Corp. assigned its “twAA-“ long-term and “twA-1+” short-term issuer credit ratings and “stable” outlook to GlobalWafers for its outstanding operation. The stable outlook reflects the agency’s assessment that GlobalWafers could sustain its market position and good profitability over the next two years as well as successfully integrate Siltronic, demonstrating the recognition of its unparallel operation and prudent financial management.

The COVID-19 and trade conflicts from geopolitics have cast a shadow over 2020, impacting many industries. Fortunately, the semiconductor industry comparably has not been affected in a major way by the unstable world economy. The epidemic has driven new business models and lifestyles. It also stimulated the development of network communications infrastructure such as clouds and servers, boosting the revenue and shipment of GlobalWafers to grow quarter by quarter. In 2021, the acceleration in 5G deployment is expected to stimulate the purchase of new smartphones, speed up digitalized and remote lifestyles to become more common, and is likely to help the recovery of automotive market due to the trend of autonomous driving and electric vehicles. It is estimated that demand for semiconductor chips around the world will continue to be strong, which would support the positive longer-term outlook for GlobalWafers.

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Important notice:
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Siltronic Shares. The terms and further provisions regarding the Takeover Offer by the Bidder to the shareholders of Siltronic AG are set forth in the offer document. Holders of Siltronic Shares are strongly recommended to read the offer document and to seek independent advice, where appropriate, in relation to the matters therein. Moreover, this announcement is neither an offer to sell nor a solicitation of an offer to purchase shares in GlobalWafers Co., Ltd.
The release, publication or distribution of this announcement in certain jurisdictions other than the Federal Republic of Germany may be restricted by law. Persons who are resident in, or are subject to, other jurisdictions should inform themselves of, and observe, any applicable requirements.
The Takeover Offer will be made in the United States of America in reliance on, and compliance with, Section 14(e) of the US Securities Exchange Act of 1934 and Regulation 14E thereunder, as exempted thereunder by Rule 14d-1(d).
To the extent permissible under applicable law or regulation, and in accordance with German market practice, the Bidder, its affiliates and/or brokers acting on its behalf may, outside of the United States of America and in compliance with applicable law, from time to time make certain purchases of, or arrangements to purchase, directly or indirectly, Siltronic Shares or any securities that are immediately convertible into, exchangeable for, or exercisable for, Siltronic Shares, other than pursuant to the Takeover Offer, before, during or after the period in which the Takeover Offer will remain open for acceptance. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. Any information about such purchases would be disclosed as required by law or regulation in Germany or other relevant jurisdictions.
This announcement may contain statements about GlobalWafers Co., Ltd. and/or its subsidiaries (together “GlobalWafers Group”) or Siltronic AG and/or its subsidiaries (together “Siltronic Group”) that are or may be “forward-looking statements”. Forward-looking statements include, without limitation, statements that typically contain words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “believe”, “hope”, “aims”, “continue”, “will”, “may”, “should”, “would”, “could”, or other words of similar meaning. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.
GlobalWafers Co., Ltd. and the Bidder caution you that forward-looking statements are not guarantees of the occurrence of such future events or of future performance and that in particular the actual results of operations, financial condition and liquidity, the development of the industry in which GlobalWafers Group and Siltronic Group operate and the outcome or impact of the acquisition and related matters on GlobalWafers Group and/or Siltronic Group may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. Any forward-looking statements speak only as at the date of this announcement. Except as required by applicable law, GlobalWafers Co., Ltd. and the Bidder do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.