Powertech said today that it has executed the strategic alliance agreement and the share subscription agreement with Unigroup. Powertech believes that this strategic alliance with Unigroup will surely stride forward and set a new milestone for its global deployment in semiconductor industry.

Duh-Kung Tsai, the Chairman and CEO of Powertech, indicated, “we are glad to form a strategic alliance with Unigroup and be its major partner for assembly and testing services. Powertech will continue to expand its capacity of advanced assembly and testing in Taiwan in order to develop advanced process for production. We expect to continue development in Taiwan while aiming China and even the world.”

While allying with Unigroup, Powertech also express the importance of Taiwan market. Powertech noted that they will continuously deepen its development in Taiwan to expand the scale of operation in Taiwan and advance Powertech’s core competitiveness.

Powertech’s current major operation sites are located in Taiwan and it employs more than 11,000 employees in Taiwan, which equals to around 90% of all the employees of Powertech. Powertech plans to use most of the cash injection from this private placement to expand its capacity of advanced assembly and testing services in Taiwan, to develop advanced process for production, and to recruit talents and aggressively establish niche gain from developments in order to advance Powertech’s core competitiveness.

In order to establish the long-term strategic alliance with Unigroup, upon obtaining the approvals from the shareholders and related competent authorities, Powertech plans to invite Unigroup, a strategic investor, through its subsidiaries to subscribe the new issued shares by means of a private placement. The new issued shares will be priced at NTD$ 75 per share and, after capital increase, the share subscriber will own 25% of the total outstanding shares of Powertech. Unigroup will designate one person to serve as a director on Powertech’s board.

Unigroup has promised to comply with Taiwan’s regulation in respect of China investors, including, but not limited to, provide industrial corporation plain and shall not have any control over Powertech.

Zhao Wei-Guo, the Chairman of Unigroup, said, “we are more than happy to form a strategic alliance with Powertech, the top outsourcing assembly and testing company in the world. We believe Powetech, with its ability in assembly and testing industry, will be an important member in semiconductor industry supply chain of Taiwan and China. We expect to achieve a win-win together following our cooperation.”