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Shares of TSMC unit soar on OTC market debut

Shares of TSMC unit soar on OTC market debut

Taipei, March 30 (CNA) Shares of Xintec Inc. (??), an integrated circuit packaging services unit of Taiwan Semiconductor Manufacturing Co. (TSMC, ???), jumped Monday, the first day of its listing on the over-the-counter (OTC) market, as many investors hoped the presence of TSMC will boost the visibility of the subsidiary, dealers said. Xintec shares rose 29.05 percent from the issue price of NT$42 (US$1.34) to close at NT$54.20, with 30.93 million shares changing hands, while the index on the OTC market ended down 1.21 percent at 142.07 points. Newly listed companies are not limited to the regular 7 percent daily maximum increase or decline in the first trading sessions after listing on the main board or the OTC market. The stock attracted strong buying interest soon after the OTC market opened and momentum continued into the end of the session on expectations that TSMC, the world's largest contract chip maker, will help the unit strengthen its bottom line, market analysts said. The analysts said that TSMC currently accounts for 35 percent of Xintec's total shares, serving as the unit's largest customer, ahead of U.S.-based OmniVision Technologies Inc., which accounts for 29 percent of Xintec's revenue. According to Xintec's prospectus, TSMC holds a 39.85 percent stake in Xintec, and current and former TSMC executives are involved in the company's management. Analysts said that after calculating indirect shareholdings, TSMC owns a roughly 48 percent stake in Xintec, which specializes in three dimensional wafer level chip scale packaging. They said that the buying also reflected optimism toward Xintec's involvement in IC packaging services for image sensor production. Xintec said that a new plant focusing on image sensor IC packaging services is scheduled to kick off mass production in the second half of this year, adding that it is upbeat that rising popularity of figure print sensor applications used in smartphones will boost its shipments. Xintec said its IC packaging services are used by customers who have wearable device applications. The IC packaging services provider posted earnings per share of NT$2.65 in 2014, up from NT$1.22 recorded a year earlier. In the first two months of this year, Xintec's consolidated sales rose 59.47 percent from a year earlier to NT$944 million. (By Jalen Chung and Frances Huang)


Updated : 2021-09-28 10:29 GMT+08:00