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Opto Tech seeking additional investment from Nichia

LED and Si-based sensor chip maker Opto Tech will issue 60 million new shares at a subscription price of NT$22.93 (US$0.82) per share for private placement, and Japan-based Nichia - a major shareholder - is the only target for the time being, according to Opto Tech.

Nichia's additional investment would bring new technologies and orders for new products for Opto Tech, said company president David Huang.

While Nichia has positive response to the investment proposal, it is concerned about security of information on new technologies it may transfer to Opto Tech and new products it may co-develop with Opto Tech, Huang indicated.

To attract Nichia's additional investment, Opto Tech has stepped up measures to block leakage of business secrets, Huang said.

In view of strong demand for Si-based sensor chips, Opto Tech has set aside a budget of NT$800 million for expanding production capacity and automation production in the second half of 2021, Huang noted. Operation of the new capacity will kick off in second-quarter 2022 and Opto Tech will begin to take corresponding orders in first-quarter 2022, Huang said.

Opto Tech's consolidated revenues of NT$330.4 million for May 2021 slipped 35.21% sequentially and 17.81% on year, amid strict control measures in Taiwan against the coronavirus pandemic that resulted in reduced production. Consolidated revenues for June 2021 rebounded to NT$543.6 million, with those of NT$2.967 billion for January-June increasing 16.73% on year.

While utilization of production capacity dropped to 60-70% in May and June 2021, Opto Tech expects the utilization to rise to a normal level in the third quarter of the year and is optimistic about operation in the second half of the year.