Key ASIC Acquires Gateway Silicon Inc. - An ASIC design company in Taiwan

KEY ASIC ACQUIRES GATEWAY SILICON INC. - AN ASIC DESIGN COMPANY IN TAIWAN


FOR IMMEDIATE RELEASE

Date: August 18, 2009 Tuesday
Contact:
Mr. K P Thong Mr. Alan Aronoff
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Key ASIC Berhad Key ASIC Inc.
6 Floor, Unit 3, 8 First Avenue, 3900, Freedom Circle, Suite 101
Bandar Utama, 47800 Petaling Jaya, Santa Clara, CA 95054
Selangor Malaysia USA
Phone : +603-7729 3300 Phone : 1-408-567-4180
Fax : +603-7729 1300 Fax : 1-408-567-4199
KEY ASIC ACQUIRES GATEWAY SILICON INC. - AN ASIC DESIGN COMPANY
IN TAIWAN
(Kuala Lumpur, Santa Clara, August 18, 2009) Key ASIC Berhad (Stock Code:
0143) has announced today that it has signed agreements with the shareholders
of Gateway Silicon, Inc. (GSI) to acquire up to 100% of the company in cash. GSI
is a subsidiary of Macronix International, Co. Ltd, one of the largest
semiconductor groups in Taiwan. The company is valued at approximately
NT171M (USD5.3M or RM18.5M) for 100%.
Gateway Silicon Inc. is one of the spin off subsidiaries of Macronix International
Co. Limited 3 years ago when Macronix restructured the Group into a few fabless
IC design companies to focus on various sectors of the market. GSI was spun-off
to focus on ASIC design, providing ASIC/SoC design to the Group and customers
in Taiwan and Japan. Chartered Semiconductor, the world’s third largest open
foundry based in Singapore is the second largest shareholders of GSI. GSI uses
Chartered Semiconductor as foundry partners in addition to TSMC, and Tower.
The Headquarters is based in Hsin Chu Science Park, the Silicon Valley of Taiwan,
with an office in Japan and China. Macronix International Co. Limited is the world
largest manufacturer of ROM products and the company provides a wide range
of Parallel and Serial NOR Flash products of varies density. The Group has
revenue exceeding USD700M.
GSI has built a significant pool of Analog IPs and Memory blocks among other IPs.
However, the company has strong expertise in graphic and video IP and this will
allow the combined entity to have a stronger and more complete offering in the
graphic and video applications.
Key ASIC is a leading ASIC design company with focus on communication and
consumer electronics applications. Listed in Bursa Malaysia, it is largely owned
by leading industry players from Taiwan and 21% owned by Khazanah, the
sovereign fund of Malaysia. It has Silterra as its foundry partner for 0.18um to
0.11um designs and IBM Microelectronics as its foundry partner for advance
process technologies from 65nm to 32nm.
Moving forward, the Company will continue its current business strategy with
strong focus on advance process technologies and continue to build IPs and
platforms in video, graphics and networking areas in addition to its current
communication and consumer electronics applications.
“Key ASIC is a leading player in the ASIC design industry. We are pleased to
merge with Key ASIC to build a bigger and stronger company that will enable all
of us to play a more significant role in the ASIC design business. Key ASIC has
very strong design experience in advanced technologies such as 65nm and
45nm and this will be a big value add to GSI’s existing customer base,” said J. P.
Peng, CEO of GSI. “We have built up a very rich portfolio of Analog IP blocks and
also a very strong Analog circuit design team that will be a value asset to the
combined entity,” he added.
“We share the same vision with the key shareholders and management team of
GSI in building a strong ASIC design business with consumer and communication
globally. Both companies are synergistic and complimentary in areas of
technologies, customer base and people. This merger will enable us to have
more resources and technologies to better support our customers,” said Eg Kah
Yee, Chairman of Key ASIC. “This strategic exercise is in line with the growth plan
of both companies,” he added.
With the acquisition, Key ASIC will expand deeper into Taiwan market and the
Japan market. The merger will enhance the revenue plan of Key ASIC and it is
expected to bring higher growth of the Company in 2010 and beyond. In
addition to organic growth, Key ASIC plans to accelerate its growth through
continuous M&A of synergistic companies.
About the Companies:
Key ASIC Berhad, Malaysia
Key ASIC (Stock Code: 0143) is currently a public listed company on Mainboard
of Bursa Malaysia. It specializes on turnkey ASIC design with IP and SoC
platforms in consumer electronics and communication applications. Its
customers are largely in the US and Asia. It has offices in Malaysia, Taiwan, and
U.S.
Gateway Silicon, Inc. Taiwan
Gateway Silicon Inc. (GSI), a professional IC design service company founded in
August 2006 at Hsin Chu Science Park, Taiwan. GSI focuses on research and
development of analog IP/digital IP for consumer ICs, provides services in SOC
implementation and IC turnkey realization. Through GSI’s proprietary platform
solutions, competitive wafer package and integrated turnkey service, customers
are able to benefit the time to market and good quality IC products from
conceptual design, system verification to mass production. GSI has offices in
Taiwan and Japan.
Q & A
1. How many people are they in GSI?
There are 60+ people at GSI. They are very experience engineers and
designers since they were spinoff from Macronix.
2. Who are some of GSI’s customers?
GSI’s customers are largely in Taiwan, Japan and US. Macronix’s group of
companies is some of its customers.
3. What is the total number of employees of the combined entity?
It is 120+ employees.
4. What is the strategy moving forward after the acquisition?
The strategy moving forward is to make deeper penetration in Taiwan and
Japan market with special focus on advance process technology.
5. Are the IPs and platforms from Key ASIC made available now to GSI’s
customers and vice versa?
We will make product lines from both companies as a single product line
available to customers from both companies. This allows us to make a
more complete offering to our customer base.