2016/03/17

WIN Semi’s Board Approves Proposal for 30% Capital Reduction

        WIN Semiconductors Corp. (WIN Semi., TPEx: 3105), the global leader in GaAs foundry services, today announced that the Board of Directors has approved a proposal to carry out a cash capital reduction with the goal of improving its capital structure and enhancing return on equity (ROE). The company plans to reduce capital by approximately NT$1.79 billion and cancel roughly 179 million of outstanding shares. This is equivalent to a 30% capital reduction. After the reduction, the paid-in capital will decrease to approximately NT$4.18 billion. This resolution is subject to the approval of shareholders at the annual general meeting scheduled for June 24, 2016.
        WIN Semi maintains its long-term commitment to improve return on equity. Having entered a stage of sustained growth, the company intends to optimize its capital structure by reaching a balance between ROE and long-term capital expenditures. After completing the capital reduction, the company expects sufficient operating cash inflow to support future growth, bolstered by increasing contributions from its core operations. The plan is consistent with WIN Semi’s goal of generating long-term value for its shareholders.
        Looking ahead, management remains optimistic toward full year growth, and maintains its view that WIN Semi will continue to benefit from positive near and long-term trends in the industry. WIN Semi will also continue to leverage its technology leadership to further improve operating performance through ongoing efforts in product diversification, maximizing value for its shareholders, customers, and employees.