Broadcom's Avago 185 million US dollars stake in GaAs plant steady Mao

Set micro-grid news, gallium arsenide foundry giant Wincoast held a board of directors on the 8th, announced the private equity case will be introduced to strategic investors Broadcom's Avago, is expected to subscribe for 20 million shares, private placement priced NT $ 277, will raise 5.54 billion Yuan NT (about 185 million US dollars), according to the steady Mao yesterday closing price of 286 yuan estimated NT, a discount of about 3.1%.

In addition to stabilizing shares into shares, Avago also signed a memorandum of cooperation with the steady Mao, Avago exit production of HBT in the future, the equipment sold to the stable Mao, the future of the company's HBT production line will be commissioned by the total stability Mao, HBT is potassium arsenide Production of a microwave component structure, but also applied to 5G communications an important component.

Wincorp said purchasing equipment will have a positive impact on both businesses and will lead to a closer partnership. "Avago will be the second largest shareholder of the firm through its private placement of about 4.7%, and Wengo emphasizes that Avago was originally a stable The top three clients, the private equity investment strategy for the main purpose, Avago will not enter the stable Mao board.

Chen Jin-chen, chairman of the firm, has said that the strategic investors he has found through private placement are clients of world-class strategic partners and that the strategy of stabilizing Mao Zedong is to fight for an international alliance. He stressed: Taiwan does not fight for an international cup, and private equity is not for lack of money , But to find a strategic partner. Even steady foreign shareholders also favor of private equity, so do not intend to discount.

Broadcom Avago has been actively seeking to enter the 5G layout, stable Mao and Avago cooperation has been a long time, from WiFi, 3G, 4G and other wireless communications are closely all relations can be expected in the future all new applications will be extended in the 5G architecture, steady Mao This alliance with Avago, not only to achieve a stable OEM orders, the future integration of the 5G will have more in-depth and comprehensive development.

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