`SilTerra needs to be part of bigger strategic alliance' [Business Times (Malaysia)]
(Business Times (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: Semiconductor wafer foundry SilTerra Malaysia Sdn Bhd, one of the financially troubled firms in the Khazanah Nasional Bhd's stable of companies, has done well in its operations and been mildly profitable, said managing director Tan Sri Azman Mokhtar.
The company, which is involved in a global industry, stopped bleeding in the last nine to 10 years, bringing about profits in its earnings before interest, taxes, depreciation, and amortisation (Ebitda).
"It has been quite an achievement, in my view, in what the management and board have done, considering we have one fab, unlike TSMC, which has about 20 fabs," he said at a media briefing on the Khazanah Report 2013 yesterday.
However, the company would need to be part of a bigger strategic alliance as the way forward.
Azman said Khazanah is looking at all options in the strategic alliance, "which could be B2B (business-to-business) or equity ownership".
"First thing we want to ensure is that it is not bleeding new money at the Ebitda level and we have been successful in that regard but the long-term solution is strategic partnership in a bigger group." On its existing business, Azman said SilTerra has been able to upgrade and maintain some of its equipment from the funds generated from its current business.
SilTerra, which has spread its wings in the global tech scene, is today more well-known in Taiwan and China and the giants of the industry worldwide, than in Malaysia.
It is ranked number 15 (based on revenue) in the global ranking of leading pure-play foundries, where it serves the mature tech segment of the market valued at USD30 billion (RM96 billion) per year.
(c) 2014 The New Straits Times Press (Malaysia) Berhad. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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