Microcontroller (MCU) factory Nuvoton held an extraordinary shareholder meeting on the 6th. In response to the 100% acquisition of Japan's Matsushita Semiconductor-related business (PSCS), Nuvoton's director and Chairman of Winbond Electronics Jiao Youjun stated that in the future, in addition to the existing product technology, It can also assist Nuvoton in developing battery product lines, which is believed to be a great operational momentum.
"The sun only exists during the day, and the wind does not always blow, but now everything needs electricity." Jiao Youjun pointed out the importance of batteries in future applications such as 5G, AI, and self-driving cars. In the third quarter of this year, Panasonic's global market share of electric vehicle batteries is about 24.6%, and it is the second largest manufacturer in the world. Jiao Youjun said that Panasonic has quite complete battery system knowledge, including customer information such as technology, supply chain, and application side. This is one of the merger and acquisition synergies he expects.
He revealed that NTT and Panasonic have been in contact for about half a year. Both sides have similar business philosophy and values. They also have 6-inch wafer fabs. They also have general-purpose MCU, cloud security, and smart home technologies. Therefore, they will have existing products in NTD in the future. There will also be multiplier effects online, and the application market will be further extended.
He added that PSCS engineers have many years of R & D experience. After the completion of the acquisition in the future, there will be no manpower adjustment issues. At present, they are only thinking about how to make the engineers fully realize the value. PSCS's 6-inch plant has silicon (Si) and gallium nitride (GaN) technology. Will it enter the compound semiconductor market in the future? Jiao Youjun conservatively pointed out that this business will be maintained.
However, PSCS had an operating loss of 23.5 billion yen last year. Jiao Youjun said that if Panasonic's current financial report is used to estimate the market outlook, it will be distorted. Although the acquisition will indeed impact Nuvoton ’s profits, if the rate of change is fast enough, the impact will be limited. Maybe 2 Years can be restored.
In order to enrich the operating capital, Nuvoton also discussed in the case of the extraordinary shareholders' meeting the issue of cash capital increase to issue ordinary shares to participate in the issuance of overseas depositary receipts. The number of issued shares is limited to 150 million shares.