The board of directors of Sino-American Silicon Products Inc. (Ticker: 5483; SAS) announced today to spin-off its business units, promoting significant growth of operating performance momentum of the three business units (Semiconductor, Solar, and Sapphire) on April 14,2011.
SAS plans to spin off the Semiconductor unit to the Company’s wholly-owned and new established GlobalWafers Co., Ltd (?lobalWafers?? and to spin off the Sapphire unit to the Company’s wholly-owned and new established Taiwan Sapphire Co., Ltd (?aiwan Sapphire??. The spin-off proposals shall be submitted to annual shareholders’ meeting to be discussed on June 17,2011.
Taiwan Sapphire is with the capital of NT$ 400 million. The business value of Taiwan Sapphire is NT$ 1,600 million calculated by subtracting the liabilities from the assets. Taiwan Sapphire will issue 40 million shares to SAS by NT$ 40 per share. GlobalWafers is with the capital of NT$1,800 million. The business value of GlobalWafers is NT$ 6,930 million calculated by subtracting the liabilities from the assets. GlobalWafers will issue 180 million shares to SAS by NT$ 38.5 per share. The record date of the spin-off is anticipated to be October 1,2011. Taiwan Sapphire and GlobalWafers will be both 100% owned subsidiaries by SAS, once the spin-off completion.
For the long time, the three business units of SAS always have better operating performance than peers. The Semiconductor business unit maintains higher growth rate of turnover than global semiconductors’ average growth rates and its growth rate is as high as 60% last year. Furthermore, GlobiTech Inc.(GTI) is currently the largest professional silicon epitaxial manufacturer in USA. SAS plans to expand the semiconductor wafer capacity of Taiwan, China, and USA plants in 2011. Sapphire business unit founded in 2007 maintains the remarkable 300% growth rate in past years. In the early 2011, the unit developed the biggest sapphire crystal in the world and intents to build its owned plant in 2011. The turnover of Solar business unit accounts for above 70% of SAS revenue. Also, in the last 7 years, the unit doubled its capacity year by year. SilFab, the Italian-based company, invested in 2008 by SAS, already build solar power plants whose generation capacities are over 25 MW in European. Recently SAS, Solartech Energy Corp., and Mrs. Cher Wang, the HTC chairwoman, set up a join venture, Sino Solar Corp. and invested in Powertec Energy Corp., to ensure polycrystalline silicon material supplent. These tactics are to enhace the Solar business stablilty and rapid growing in the future.
Once spin-off completion, Solar, Semiconductor, and Sapphire business units shall be more competitiveness, utilize resource efficiently, and have higher visibility in the industries. While the overall operating performance will move to a better level after spin-off, SAS can create and offer more benefits to shareholders.
About Sino-American Silicon Products Inc.
Sino-American Silicon Products Inc.(Ticker: 5483) was founded in 1981 and the leading and the first public company specializing in the manufacturing of medium-and small-diameter silicon wafers in Taiwan, possesses all of the technologies required for silicon ingot growth, slicing, etching, diffusing, polishing, epitaxial and sapphire wafer fabrication. The products can be applied in the field of Discrete, Optoelectronic, Analog and Photo Voltaic. SAS has three core business units, which are Semiconductor, Solar, and Sapphire and owns three semiconductor plants in Kunshan China, Texas USA and Hsinchu Taiwan. The turnover growth rate of the semiconductor business is approximately 60% last year. At the same time, the Solar business already successfully developed A++ wafers to improve the conversion efficiency of the cells. The A++ wafers achieved 17% conversion efficiency and significantly enlarged the gap between SAS and peers and received the industry’s high degree of certainty. SAS is constantly the No.1 solar wafer supplier. The management team was focus on the R&D of sapphire in 2010. It is expected that SAS will produce the raw material on its own to decrease purchasing cost and to raise profit margin and to endeavor above 4??high value added orders. The sapphire production line was tune-up successfully and started aggressively shipping wafers. To cooperate with high luminance sapphire substrates outstanding shipments, the revenue of 2010 increased at 300%. SAS will enlarge production scale, decline cost and maintain the highly grow momentum along with the new production capacity expansion of all business units.