SilTerra recently announced it has entered mass production for it's 180nm Bipolar-CMOS-DMOS ("BCD") automotive grade process technology.
This smart technology IC chip is the first in the world to be a 180nm 8 inch Grade 0 process.
Note that TSMC's 90nm 8 inch is only expected to pass qualification (Not automotive like SilTerra)
With global adoption of electric vehicles, SilTerra new mass production IC chip is in enormous demand.
Benchmarking with global IC companies selling 8 inch Bipolar-CMOS-DMOS IC chips, a single wafer for the Bipolar-CMOS-DMOS IC could fetch at minimum USD24k per wafer.
Assuming just 30% existing capacity is used for this technology, revenue could fetch at minimum RM1.3bil (30% capacity for Bipolar-CMOS-DMOS), with profit margin of 30% RM400mil.
In addition to that, load to Chipone making up the remaining 70% at revenue of RM1bil with profit margin of 8% of RM80mil
At minimum, net profit could fetch RM480mil, at PE of 38 (Benchmarked to Inari), SilTerra's value to DNeX alone should beRM3.5 (Not including Ping Petroleum)
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Its a powerful automotive chip. Not every 8 inch foundry can produce grade 0 automotive chip because its very difficult to pass the test.
Silterra had finally obtained the ticket to produce one of the higest premium lucrative chip in the market .
The headache now is too many customers,which to priortise.
Foxconn boss said long term contract will be coming soon.
Probably silterra will reserve the automotive caps for foxconn
Liu Yangwei said that Hon Hai and the Malaysian 8-inch wafer foundry SilTerra (Silicon Jia) have started business and engineering discussions and will soon sign a long-term contract. Xsemi, a joint venture with Yageo, plans to manufacture high-performance analog semiconductors and small chips.
may be has to wait until profits come in than share price only react.
I think many people will wait until October before making a decision.
I hope, history will not repeat itself.
This guy assume only Dnex will get the business of certain percentage.U know how many company like Silterra in the world or let say Asia.
Profit margin for world best wafer foundry house TSMC is only about 40%. Now for a multi-year loss making foundry you assume can achieve profit margin of 30% is overly optimistic.
To debunk some hearsay above with facts:
First statement made by user above - "Assume only Dnex will get the business. How many companies like Silterra in the world or let say Asia"
Facts - Fortunately, SilTerra is indeed the only wafer fab:
1. In the world that has BCP-CMOS-DMOS Grade 0 (Meaning chip is able to withstand temperatures up to -150C)
2. It is also the only company in the world to begin mass produce this chip
3. It is also the only company in the world to IP this IC chip
4. It is also the only company in the world that has both Foxconn as its shareholder + Beijing CGP as a major shareholder of its subsidiary
5. It is also the only company in the world that is able to secure long term supply contract with Chipone
6. It is also the only company closest proximity to Foxconn's EV plans in Thailand that has local presence + automotive grade 0 IC chips
Note that most major fabs in Asia had capacity already maxed out for Smartphone and other devices, whilst Silterra with RM200m equipment upgrade is able to increase its capacity by 10-15% without incurring large capex cost (Also the only one in Asia, the rest need 2 years for ramp up)
Second hearsay statement made by another user above - "Assume can achieve profit margin 30% is overly optimistic"
Facts - Fortunately, there are global monthly IC analysis reports that analyses CMOS & DMOS IC chips by specs so that users are able to make a highly calculated analysis
Chipone contract was run in 5 year term.
1bil should be divided by 5 = 200mil per year
the news are flowing like river but there is no momentum yet as the investors are not that keen in accepting it at least for now.