DNeX’s SilTerra bags RM1.69b long-term contract from China’s Chipone

SilTerra will supply wafers which are used in the production of semiconductor devices to the customer exceeding US$400mil based on various assumptions.

KUALA LUMPUR: Dagang Nexchange Bhd’s (DNex) subsidiary SilTerra Malaysia Sdn Bhd has secured a multi-year contract worth US$400mil or RM1.69bil (US$1: RM4.23) with ChipOne Technology (Beijing) Co. Ltd.

Under the multi-year agreement, SilTerra will supply wafers which are used in the production of semiconductor devices to ChipOne, it said on Wednesday.

ChipOne is a leading driver integrated circuit (IC), touch controller and fingerprint sensor fabless integrated circuit design house in Beijing.

The statement said both companies will work closely on product development and mass production based on SilTerra’s state-of-the-art bipolar-CMOS-DMOS (BCD) technology.

DNeX said CMOS and DMOS refers to complementary metal oxide semiconductor and double diffused metal oxide semiconductor respectively.

The statement pointed out BCD technology is one of the key building blocks of SilTerra’s smart power technology platform developed to deliver optimum energy efficient products based on proven mature process technology, intellectual property and design kits.

Syed Zainal Abidin Syed Mohamed Tahir

Tan Sri Syed Zainal Abidin Syed Mohamed Tahir (pic, above), group managing director of DNeX and also executive chairman of SilTerra said:

“We are pleased for SilTerra to enter into this agreement with one of the leading semiconductor chip design companies in China. This also shows the commitment of the new shareholders of SilTerra in transforming the company through driving sustainable business.”

Syed Zainal said the agreement will also see SilTerra having a guaranteed wafer base load for the next several years and ensure a high factory utilisation rate for the company going forward.

“IC designers are striving to deliver energy efficient products, and this is aligned to strategies towards energy conservation and sustainability. As such, they look to adopt the smart power design techniques as well as advanced power technologies to meet this objective,” he said.

SilTerra will be leveraging on its proven process technology, foundry design kits and intellectual property to deliver optimum energy efficient products.

DNeX recently completed the acquisition of a 60% stake in SilTerra from Khazanah Nasional Bhd.

Together with its partner, Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Ltd Partnership) (CGP Fund), DNeX expects to transform SilTerra into a competitive global semiconductor technology player that will be able to capitalise on the strong demand for semiconductor chips globally.