26 Jul 2021
DNeX Completes the Acquisition of SilTerra

Cyberjaya, 26 July 2021 – Dagang NeXchange Berhad (“DNeX”) has completed the acquisition of 60 per cent equity interest in SilTerra Malaysia Sdn Bhd (“SilTerra”) from Khazanah Nasional Berhad. DNeX is now is the majority shareholder of SilTerra.

SilTerra is involved in the manufacturing of semiconductor wafers and supplies multinational fabless and integrated device manufacturer companies.

Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX said, “We are pleased to announce the completion of our acquisition of SilTerra. Our entry into the semiconductor market is certainly well-timed given the current global shortage of chips affecting deliveries of cars, home appliances, notebooks, smartphones, and video game consoles, amongst others. We expect demand to continue to rise beyond 2024 driven by the growing adoption of 5G wireless technology, IR 4.0, Internet of Things (“IoT”), cloud computing and electric vehicles.”

“Together with our partner, Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) (“CGP Fund”), we are confident in our ability to transform SilTerra into a competitive global semiconductor technology player that will be able to capitalise on the strong demand for semiconductor chips globally. Moving forward we will focus on strengthening SilTerra’s fundamentals in terms of plant utilisation and cost optimisation while introducing a vast network of global clientele. It is time to put SilTerra on the map again,” he said.

“With our focus on the adoption of the latest semiconductor manufacturing technology, we expect to set in motion a positive spill-over effect throughout the semiconductor value chain in Malaysia comprising companies involved in product design, manufacturing, packaging and assembly. We are confident that this will in turn strengthen Malaysia’s position in the everevolving digital arena,” he added.

To recap, DNeX’s acquisition of the 60 per cent stake in SilTerra is valued at RM168.3 million and will be satisfied entirely by cash. CGP Fund owns the remaining 40 per cent stake in the nation’s largest chipmaker.

DNeX and CGP Fund plan to pursue various initiatives that will upgrade SilTerra’s equipment and manufacturing capabilities in new technologies, increase the utilisation of SilTerra’s foundry while at the same time, optimise better product mix, as well as improve sales margin, which in turn is expected to drive the turnover and enhance the earnings potential of SilTerra.