Sunrise sold 4 chip sealing and testing factories in the mainland at 9.3 billion yuan, which is more like “running away”

A few days ago, everyone was excited by the news that SunMoon, the world’s most powerful chip packaging and testing enterprise, sold four chip packaging and testing plants located in Chinese Mainland to Chinese capital Zhilu Capital at a price of 1.46 billion US dollars (about 9.3 billion yuan).
For a moment, everyone said that this would greatly improve the overall competitiveness of China’s chip industry. After all, Sunrise is the world’s first sealing and testing enterprise. What he has produced is of course good, and many domestic enterprises want it.
Sunrise sold 4 chip sealing and testing factories in the mainland at 9.3 billion yuan, more like “running away”
Of course, it’s hard to say whether it’s a good thing or not. After all, it’s not too bad to buy it at 9.3 billion yuan. The Zhilu Capital, which is taken over, is originally an investment institution, but also needs to make money from the middle. It’s impossible to make a loss deal.
However, as for the sale of four mainland factories by Sunrise, I think it is more like running on the road. Don’t be so paranoid. It’s just that when “running”, China Capital just took over. As for whether or not, everyone has different opinions. I will just talk about my analysis.
Sunrise sold 4 chip sealing and testing factories in the mainland at 9.3 billion yuan, more like “running away”
According to Sunrise, it is to optimize the strategic layout and effective use of resources of its sealing and testing business in the mainland market, thus strengthening the overall competitive strength of Sunrise in the mainland market.
But once these four factories are sold, Sunrise and Moonlight have no factories in the mainland. How can we optimize the layout and strengthen competitiveness? They didn’t say they would build a new factory, so this is just rhetoric.
At the same time, Sunrise also said that it would continue to strengthen the resource investment in high-end technology research and development and capacity construction in Taiwan, and seek to serve all customers with advanced technology under the global layout. This is the real purpose. That is to sell the factories in the mainland and then use the money to strengthen the construction investment in Taiwan. What is it?
Sunrise sold 4 chip sealing and testing factories in the mainland at 9.3 billion yuan, more like “running away”
In fact, the four factories of Sunrise in the mainland are mainly engaged in the business of discrete devices, medium and low level sealing and testing, and materials. For Sunrise, it is not advanced technology at all, nor is it the key point. The profit contribution is only 3% of Sunrise’s profit.
Therefore, the sale of such enterprises has no effect on Sunrise. Instead, it sells the relatively backward industries at a relatively high price (about 21 times of PE, which should be more than twice the premium compared with Sunrise’s own 10 times of PE in the capital market), and then invests the money in advanced technology. Sunrise also earns money.
So about the sale of mainland factories by Sunrise and Moonlight, I think it is more likely to “run away”. We will eliminate backward production capacity in this way, and then build advanced technology factories in Taiwan or other regions. What do you think?