Sino-American Silicon Products Inc. 40% off over Covalent Acquisition price

SAS Investor Conference held in April 12 states not only operation and future plan of GlobalWafers, Sino Sapphire and itself, but also the acquisition of Covalent Silicon Corporation finished in March.

Optimistic first quarter improves revenue for Semiconductor/Solar/ Sapphire. In second quarter, German subsidy cuts may impact solar business; semiconductor and sapphire substrate are fueled with positive growth. Especially Sino Sapphire, capacity expansion is expected to reach three times by the late half year, value-added pattern sapphire substrate occupying 90 % of shipment contributes to higher revenue and profit over rivals.

As for Covalent acquisition, European sovereign debt made it difficult for buyer and seller to reach consensus, and delayed about four months to finish. However, buyer’s persistent negotiation and Japanese yen depreciation in March leaded to 40% discount of purchase price compared with the original estimate, which brings out reasonable cost and investment in future performance for GlobalWafers.

According to SAS, Semiconductor sales dipped drastically in February, indicating the industry is returning to a more normal cycle. Not only GlobiTech, the American subsidiary, and GlobalWafers are in full capacity, SST, the subsidiary in mainland China, is also equipped with 80% activation. Covalent, the newly acquired Japanese subsidiary, are projected to reach full production in the fourth quarter. We firmly believe that GlobalWafers can utilize synthesis generated by aforementioned members and ramp up. After acquisition, Covalent revenue is included in consolidated financial statements, which results in semiconductor occupies over 50% of group revenue since April, and becomes main profit source.

Regarding sluggish solar industry, SAS reckons it’s an inevitable phase for emerging business so as to adjust supply and demand. From panoramic viewpoint, solar is the best and most applicable green energy that most countries focus, which ensures future development. Solar industry initial development is easily influenced by national subsidy support owing to its limited economic scale and technology. Nevertheless, photovoltaic price has achieved grid-parity with traditional electricity; energy conversion efficiency becomes crucial in industrial restructure. SAS President, Doris Hsu, is invited to be the moderator of Solar Leaders Dialogue 2012 on March 15, initiated by APVIA, aiming to discuss the sustainable development of PV industry, the cooperation and development strategy in Asia, Europe and North America, so as to reach a mutual perspective. How to elevate conversion efficiency to strengthen solar competitiveness and applicability also is the key point of the meeting.

SAS solar wafer conversion efficiency has always been superior, and our advancing technology is being researched and undermined. It is SAS technical superiority that outshines other rivals and become predominant.

Sino American Silicon Products Inc.

Spokesman : Simon Tai

TEL : (03)577-2233 #337

e-mail:simon@saswafer.com

HTML, CSS and JavaScript are the client-side elements of every website. Learn them to become a web developer.

Leave a Reply