Winbond's logic IC biz christened Nuvoton

Winbond Electronics Corp. has spun off its logic IC business and as the company realigns its focus on designing and producing memory products.

The spin-off firm, dubbed Nuvoton Technology Corp. will be a wholly owned subsidiary of Winbond and will be executed while approved in the shareholders' meeting on April 30.

The company has started the realignment, adjusting Logic and Memory business groups to five profit centers, to reinforce its operating efficiency since October last year. Due to the different models of business characteristics, the Board of Directors further resolved to separate the logic and memory business groups. Given the specialization and division of the labor, Winbond and Nuvoton will continue moving forward with maximum competitiveness respectively.

With the spin-off, Nuvoton will succeed on the product lines, intellectual properties, cooperation partners and customers of the logic business. Based on the solid foundation, Nuvoton will be at a full speed to reinforce product innovation and acquaintance in the end market to provide customers with much more perfect service. Winbond, meanwhile, will concentrate on the memory business including DRAM product, flash memory IC, and memory IC manufacturing, and also keep delivering high-quality as well as high-yield products to meet the market demand.

Winbond will acquire all the issued shares of Nuvoton at a net price of 35 cents per share. Nuvoton's capital stock will be $81.3 million. After both Winbond and Nuvoton shareholders approve the spin-off, the record date will be jointly decided by the Board meetings of both companies. Tentatively the record date is set on July 1.