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Merger of GlobalWafers and Siltronic will create the second largest supplier of silicon wafers in the world
thirty.eleven.2021 [08:02],
Alexey Razin

This year is characterized by a number of major semiconductor deals – just remember NVIDIA’s announcement of its intention to buy Arm. In the coming month, GlobalWafers and Siltronic, major suppliers of silicon wafers, from which microprocessors are made, may merge their assets. The new player will be able to claim the second place in the market.

Image Source: Nikkei Asian Review

The upcoming deal between the Taiwanese GlobalWafers and the German Siltronic was reported by the Nikkei news agency. Under the terms of the deal, GlobalWafers will buy back Siltronic shares at € 125 per share, which is about 10% higher than the price of the last trading session. Shares of both manufacturers gained tens of percent this quarter as demand for semiconductor components increased demand for silicon wafers. GlobalWafers is expected to cost $ 4.5 billion to buy back all Siltronic shares.

As of the end of the first quarter, GlobalWafers ranked third in the world among manufacturers of silicon wafers with a market share of 17%, the German company Siltronic was in fourth position with 13% of the market. The segment leaders remained the Japanese companies Shin-etsu Chemical (33%) and Sumco (25%), but after the merger of GlobalWafers and Siltronic, the former will be able to claim the second position.

The participants in the transaction expect that it will not take long to agree on the terms, and it will be completed by mid-December. The agreement implies that Siltronic’s headcount in Germany will not be cut until the end of 2024. Through this deal, GlobalWafers will receive orders from European semiconductor manufacturers.

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