According to overseas media reports, after Jiangsu Changdian acquired STATSChipPAC in Singapore for $780 million in 2015, its operating performance has remained poor in recent quarters, indicating that the consolidation effect is not obvious. Other players who are able to expand their semiconductor strength through overseas acquisitions will be a reference to avoid repeating the same mistakes.
Some media pointed out that the long-term operating performance of Changjiang Electronics" target="_blank">Electronics Technology Co., Ltd., supported by SMIC and the National IC Industry Investment Fund, did not reflect the consolidated effect after the merger with Xingke Jinpeng in 2015. In the world‘s top five packaging and testing plants, the scale of revenue has not changed substantially, and the pricing and cost reduction benefits are limited, which will become a mirror for China‘s development of the semiconductor industry in the future.
Xingke Jinpeng focuses on the back-end chip process, mostly relying on high-end mobile phone advanced packaging business, ranking the world’s fourth largest packaging and testing plant, due to weak global demand for the smart phone market, coupled with the overall economic slowdown, as well as mobile phone and chip industry The company gradually adopted its own testing and testing strategy, which made the performance of the packaging and testing factories of Xingke Jinpeng and so on. Among them, Xingke Jinpeng’s revenue in 2016 is likely to fall by 1~20%.
At present, among the top five global packaging and testing plants, ASE, Amkor and counterfeit products are still in the leading position. Changdian and Xingke Jinpeng are still behind, and after the merger, the long-term debt-to-equity ratio In the past, 0.9% has increased to 2.3%, indicating that the ability to borrow has reached the warning line, and the huge interest burden will eat most of the business benefits. In addition, after the merger of Changdian and Xingke Jinpeng, the interest expense increased rapidly from RMB 50 million per quarter to RMB 200 million.
Recently, SMIC completed two transactions worth RMB 3.3 billion through its subsidiary Shanghai SilTech, which increased the ratio of long-term shares held by SMIC to 14.3%, becoming the largest shareholder of Changjiang Power, and the impact of future long-term profit and loss performance on SMIC. Will be more direct. In terms of the operating performance of Changdian in the first quarter, it is estimated that SMIC’s net profit will be reduced by 5%, and SMIC’s first quarter net profit will be US$61.42 million, an increase of 10.7%.
However, despite the poor performance of Xingke Jinpeng, Changdian’s investment in Xingke Jinpeng has not shown signs of shrinking. Recently, it has allocated US$300 million to increase Xingke Jinpeng’s technology related to fan-out wafer level packaging (FoWLP). Investment, and optimism, expects to generate about $100 million in additional revenue each year.