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LG Siltron to go public via $450M IPO

Posted: 04 Apr 2011 ?? ?Print Version ?Bookmark and Share

Keywords:LG Siltron IPO? silicon wafer? raw silicon? wafer supply?

Quoting a report from the International Financial Review, Reuters recently disclosed that LG Siltron Inc. has commissioned two financial institutions to oversee its planned $450 million initial public offering. LG Siltron is South Korea's only silicon wafer manufacturer. LG Siltron has hired UBS AG and Woori Investment & Securities Co Ltd as lead managers, according to the report.

The company, the world's fourth largest maker of silicon wafers, is majority owned by LG Corp. Scheduled in the second half of 2011, the IPO is expected to be worth an estimated 500 billion won (about $450 million), Reuters referenced IFR as saying. It was not revealed on which stock market or markets LG Siltron stock would be traded or whether the company has filed documents with any market authorities.

The move would appear to be an attempt to bolster the security of raw silicon wafer supply for South Korean memory chipmakers Samsung Electronics Co. Ltd and Hynix Semiconductor Inc. LG Siltron earned nearly half of its revenue in the first nine months of 2010 from Samsung (30 percent) and Hynix (15 percent), according to the Reuters report, which said the company is seeking to expand its output of 300mm wafers.

The money-raising effort comes at a time when Japanese wafer maker Shin-Etsu Chemical Co. Ltd, the world's leading supplier of silicon wafers, has been forced to close its Shirakawa plant, following the March 11 earthquake in Japan.

Shin-Etsu counts Korean chips companies Samsung Electronics Co. Ltd and Hynix Semiconductor Inc. among its customers. Its Shirakawa plant is thought to have a production capacity of between 600,000 and 700,000 wafers per month, and it is not yet known when production will resume. U.S. wafer maker MEMC Electronic Materials Inc. has also stopped production at a factory north of Tokyo.

- Peter Clarke
??EE Times

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