After WPG Holdings announced its stake in WT Microelectronics, it is understood that the two parties have not interacted so far. WT Microelectronics chairman Zheng Wenzong stated yesterday (27) that WPG Holdings is a competitor in operation. As for the exchange of shares with Xiangshuo, he emphasized that WT Microelectronics has long-term investment in IC design companies and has successful cases. This strategy has also been comprehensively evaluated. Just because the time of occurrence was close, everyone exchanged 171 million shares of WT Microelectronics for a share exchange with Xiangshuo, which was conflated with the originally planned private placement or the current increase of 170 million shares, but these are two different things.
Zheng Wenzong said that the stock exchange case is a mid-to-long-term development. Both sides have carefully evaluated it. Even Asusco, the parent company of Xiangshuo, is optimistic. The share conversion ratio has been discussed in detail.
WT Microelectronics shareholders meeting was not open yesterday. It is understood that regardless of whether the shareholders' questions are related to the proposal, Zheng Wenzong responded one by one. He emphasized that WT Microelectronics attaches great importance to communication with shareholders, and will not ask false answers, "I can tell you what can be answered." The amount of future fundraising cases will also take into account shareholders' profits and the company's funding needs.
Zheng Wenzong believes that WPG Holdings has acquired the equity of WT Microelectronics, so there is no need to talk about it, but WT Microelectronics will not stop developing because of this matter. He confessed that in the first minute of hearing the news, he thought, "Is it possible to merge?" But he thought and asked the upstream and downstream manufacturers, and the answer was no, so he also made various external explanations.
Zheng Wenzong said that if there is no new crown pneumonia epidemic this year, the semiconductor industry should be obviously growing, but now it is disrupted and the economic impact caused by it is still unclear. He is not worried about the production side, but is worried that market demand will be affected.