Why did ASE sell its four factories in mainland China and take over with China’s capital of 9.3 billion. Is it a profit or a loss?

The day before yesterday, a heavy news broke out suddenly that ASE, the world’s largest chip packaging and testing giant, sold its four subsidiaries in mainland China. And it is Chinese capital-Zhilu Capital, whose transaction price is 1.46 billion U.S. dollars (about 9.3 billion yuan).

Suddenly, various discussions arose. After all, ASE ranks first in the world. At the same time, mainland China is working hard to develop the chip industry, and we have performed well in the packaging and testing industry. Once we win these 4 factories, it will obviously improve. The comprehensive competitiveness of our chip industry.

Then the question arises. First, why did ASE sell its four mainland factories? Second, is China’s capital 9.3 billion to take over, is it worth it?

Let me talk about the first question first, and that is why ASE sells these 4 factories. After ASE sells these 4 factories, besides Sipin still has its packaging and testing business in the mainland, ASE Group is basically in the mainland. There is no packaging and testing plant.

Regarding this matter, ASE said so. He said that this will optimize the strategic layout of the packaging and testing business in the mainland market and the effective use of resources, thereby strengthening the overall competitiveness of ASE in the mainland market.

In fact, there are two reasons why ASE should sell. One is the current situation. I don’t say much about it. Everyone knows it. After all, ASE emphasizes that it will continue to strengthen its investment in high-end technology R&D and capacity construction in Taiwan. , So everyone understands.

The second is that the four factories of ASE in the mainland are actually not important to ASE, nor are they core industries. They are all engaged in relatively mature (low-end) technology, and their contribution only accounts for 3% of ASE’s profit. . Therefore, the sale will not have a big impact, so in view of the first situation, ASE sold it.

Let’s talk about the question of whether it is worthwhile for Zhilu Capital to take over 9.3 billion. In fact, Zhilu Capital is only an investment institution. In theory, after he takes over, there will be further actions in the follow-up, either integrated and packaged for listing, or sold to other domestic semiconductor manufacturers. I won’t hold it in my hand forever.

If packaged and listed, or sold to other domestic manufacturers, according to the current revenue and profit of these four companies, 9.3 billion yuan is equivalent to 21 times the PE value.

With reference to domestic listed chip packaging and testing companies, their PE values ​​are generally between 20-30 times, which are basically higher than 21 times, so it is definitely not a loss.

However, if you refer to the 10 times PE value of ASE in the capital market, Zhilu Capital acquired it at a premium, but this is a matter of fact. At 10 times PE, ASE will not sell it.

In addition, under special circumstances, although the four factories of ASE are relatively backward for ASE, they are not necessarily backward for many domestic manufacturers. Many companies need to package and test this piece to improve their industrial chain. Willing to pay a higher price, so for Zhilu Capital, it is entirely possible to make a profit from it, so there is no loss.

Finally, in combination with the current situation, we ourselves are vigorously developing the chip industry, and this is a ready-made one. From the overall situation, it can be regarded as a reasonable price acquisition, so it is definitely not a loss.

The Links:   LQ043T1DG28 G270QAN010 Display COMPANY

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *