Amtech Systems Divesting Solar Businesses; Focusing on Semiconductors
Amtech Systems, Inc. announced that the company management and board of directors have decided to focus solely on growth opportunities in the company's semiconductor and SiC/LED polishing businesses. As part of the renewed focus, Amtech intends to sell its solar businesses, including its Tempress and SoLayTec subsidiaries. (See the image above of the InPassion ALD system from Amtech Systems subsidiary SoLayTec).
"In November 2018 we announced that we had initiated a comprehensive review of our solar businesses. In a February update we noted thus far our review strongly indicates that our combined Semi and SiC/LED polishing business provides better markets for enhancing the value of Amtech Group," Amtech's J.S. Whang, Chairman and Chief Executive Officer, commented.
"We have recently completed our assessment and conclude, along with Tempress and SoLayTec management, that significant investment is required to effectively compete in the changing solar industry. We, therefore, conclude Tempress and SoLayTec would be better positioned to capitalize on opportunities in the solar industry under new ownership," Mr. Whang said.
Financial and Strategic Growth Benefits
Amtech says that the expected divestiture of Amtech's solar businesses offers compelling financial and strategic benefits. The streamlining and divestiture allows the company to stop solar losses and enhance its cash flow and earnings growth profile. According to Amtech, the streamlining and refocusing also positions the company to invest in the three semiconductor value chains in which it operates; chip substrate, chip fabrication, and chip packaging and SMT. Amtech also intends to use the streamlining to further its position as a market leader in the fast-growing, high-end power chip market (SiC and 300mm Si HTR).
"With renewed excitement, we now look to dedicate our resources to our semiconductor and silicon carbide businesses. We see significant opportunity to build upon our strengths as we seek to more fully participate in the fast-growing advanced power chip opportunities ahead of us. We believe this strategic shift transitions Amtech to a business model that can deliver more reliable profitability in both the near and longer term," Mr. Whang, added.
Amtech Systems, Inc. serves as a supplier of advanced thermal processing and polishing equipment and related consumables to the semiconductor/electronics and power IC businesses, as well as the advanced lighting manufacturing, and solar markets.