As shared during the weekend session on the topic Global Chip Crunch, many leading industry experts had mentioned that chip prices for 200mm wafers had soared more than 40%-100%.

DNeX is poised to record a record breaking revenue and profit from SilTerra (expected to double in revenue and record a record breaking profit).

Further catalyst is collaboration on supply deal with Foxconn on EV.

Note that SilTerra's 180nm Bipolar CMOS-DMOS ("BCD") automotive grade 0 technology chip was announced on 26 August 2021 (First BCD chip in the world to be grade 0)

Also, this chip has entered mass production since September 2021.

Foxconn's EV announcement was then on 18 October 2021.

Coincidence? or not?

You be the judge.

Based on verified sources, DNeX is in advanced talks with Foxconn on multi year wafer supply deal for Foxconn's EV manufacturing.

The deal involves multi year supply of SilTerra's latest 180nm BCD automotive Grade 0 chip.

This deal is expected to be a bumper deal for SilTerra as it will leapfrog its revenue by double due to worldwide chip shortage.

There are some less credible comments made above to clarify:

Comment 1 - "400mm is Taiwan Standard, maybe 800mm now"

Fact 1 - "TSMC is in early stages of exploration and research of 400mm wafer. The major roadblock for 400mm wafer chips is that the development of 400mm wafer requires costs that are so significant that, at the moment, even if mass produced, cannot be recovered at a profit.

In layman terms,
Cost to develop and mass produce a 400mm wafer chip for iPhone = US$10,000 per fragment wafer
Revenue earned from selling a wafer chip to iPhone = US$500 per fragment wafer

Thus, 400mm wafer chip is still light years away"

Comment 2 - "200mm wafer is useless"

Fact 2 - "200mm is the most used semiconductor chip in EV. It is also the main reason for the global chip shortage. While 300mm wafer chip is widely used in phones, it is less used for EVs"

Note that under the terms of the Sale and Purchase Agreement ("SPA") between Khazanah and DNeX, that Khazanah had cleared all Accumulated Losses in DNeX via forgiving the convertible loans that SilTerra owes Khazanah.

The convertible loan forgiven (Share capital) has been capitalised and offsetted against the accumulated losses.

Fact: As such, DNeX will not be consolidating SilTerra's historical accumulated losses as it has been offsetted by the recapitalisation of the forgiven debt/convertible loan notes.

Please read the SPA disclosed by DNeX to Bursa clearly.

Note that Foxconn and PTT are in advanced negotiation stages on the production/manufacturing of EV's.

Foxconn's head honcho had mentioned in an interview to Taiwan reporters that they will be tapping into SilTerra and Macronix on the supply of 8 inch wafers, which is semiconductor chips mainly used in EV.

Key points from DNeX's recently announced results + future prospects:

i. Key points from Q4 results announcement:
- Based on the Purchase Price Allocation exercise performed on 60%-Ping acquisition, DNeX's consolidated 90%-share of the effects on business combination is RM273mil. This can be simply interpreted as the excess of fair values of Ping's inventories (oil) and assets (oil rig's and oil rights) over the price paid for the 60% stake.
- SilTerra's results is not consolidated yet as the acquisition is deemed completed only in July 2021 (refer announcement to Bursa).

Questions many may ask:
- The effects of business combination is only accounting, not real cash. Why is it good?

Answer:
- While yes, the effects of business combination is only accounting, but it also means that Ping will be realising these oil inventories in the next few quarters at a higher fair value. Realising these oil inventories at higher value also means higher profit contribution from Ping to DNeX.

Note that the valuation of fair value of Ping's oil inventories are done by professional accountants/experts. In valuing these oil inventories, the factor considered is the net realizable value, which is the price Ping is able to fetch if they sold the oil inventories.

So the answer is - Yes this latest quarter result is good, because it proved to investors that Ping will be able to sell oil inventories at a higher price in the next few quarters, which translates to higher Profit.

Based on 8 inch silicon grade wafer price of US4,500 per wafer above, SilTerra is capable/expected to rake in revenue of:

40,000 wafers per month x US4,500 = US180mil per month or US2.16bil per annum

Assuming a 20% net profit margin = US432mil or RM1.7bil net profit

Factored for DNeX's share of 60% = RM1bil net profit per annum

At PE of 15, SilTerra's value to DNeX alone is RM4.85 per share

Premium rush for 8 inch wafers | 17 Sep 2021 0900 GMT +8

Silicon Today noted that prices for 8 inch wafers had once again increased by 20% due to a "Premium Rush" in the Electric Vehicles ("EV") market coupled with acute shortage for all other devices, particularly household and industrial electronics. This situation is exacerbated by lockdowns in Asia resulting in order to receive time had increased by a further two months.

Based on channel check, an 8 inch silicon grade wafer price had risen to US4,500 per wafer. The situation is expected to be worse in the coming months, and going into 2022.

Second hearsay statement made by another user above - "Assume can achieve profit margin 30% is overly optimistic"

Facts - Fortunately, there are global monthly IC analysis reports that analyses CMOS & DMOS IC chips by specs so that users are able to make a highly calculated analysis

To debunk some hearsay above with facts:

First statement made by user above - "Assume only Dnex will get the business. How many companies like Silterra in the world or let say Asia"

Facts - Fortunately, SilTerra is indeed the only wafer fab:
1. In the world that has BCP-CMOS-DMOS Grade 0 (Meaning chip is able to withstand temperatures up to -150C)
2. It is also the only company in the world to begin mass produce this chip
3. It is also the only company in the world to IP this IC chip
4. It is also the only company in the world that has both Foxconn as its shareholder + Beijing CGP as a major shareholder of its subsidiary
5. It is also the only company in the world that is able to secure long term supply contract with Chipone
6. It is also the only company closest proximity to Foxconn's EV plans in Thailand that has local presence + automotive grade 0 IC chips

Note that most major fabs in Asia had capacity already maxed out for Smartphone and other devices, whilst Silterra with RM200m equipment upgrade is able to increase its capacity by 10-15% without incurring large capex cost (Also the only one in Asia, the rest need 2 years for ramp up)

Facts:

- SilTerra is the first in the world to produce 180nm Bipolar-CMOS-DMOS (“BCD”) automotive grade process technology that is Grade 0.
- Even TSMC's highest technology for 8 inch BCD technology is only Grade 1.
- Even TSMC's 8 inch BCD technology that meets Grade 1 is non-automotive IC Chip
- Given Foxconn's ambitions in EV, to create competitive advantage, there is a high chance they will use SilTerra's BCD automotive IC chips (More powerful IC chip + already have a 3% stake in DNeX)

SilTerra recently announced it has entered mass production for it's 180nm Bipolar-CMOS-DMOS ("BCD") automotive grade process technology.

This smart technology IC chip is the first in the world to be a 180nm 8 inch Grade 0 process.

Note that TSMC's 90nm 8 inch is only expected to pass qualification (Not automotive like SilTerra)

https://www.tsmc.com/english/dedicatedFoundry/technology/specialty/bcd

With global adoption of electric vehicles, SilTerra new mass production IC chip is in enormous demand.

Benchmarking with global IC companies selling 8 inch Bipolar-CMOS-DMOS IC chips, a single wafer for the Bipolar-CMOS-DMOS IC could fetch at minimum USD24k per wafer.

Assuming just 30% existing capacity is used for this technology, revenue could fetch at minimum RM1.3bil (30% capacity for Bipolar-CMOS-DMOS), with profit margin of 30% RM400mil.

In addition to that, load to Chipone making up the remaining 70% at revenue of RM1bil with profit margin of 8% of RM80mil

At minimum, net profit could fetch RM480mil, at PE of 38 (Benchmarked to Inari), SilTerra's value to DNeX alone should beRM3.5 (Not including Ping Petroleum)

DNeX's SilTerra will benefit tremendously from the chip shortage experienced globally.

SilTerra has been operating at 91% since the beginning of the year.

Expansion of 10% is in the works after pumping in capital for upgrading wafer machineries.

Based on back of the envelope calculation, DNeX is expected to make a healthy PATAMI of RM150mil-RM200mil on RM1.3bil-Rm1.5bil revenue for FY21, mainly contributed by significant improvement in financial performance from SilTerra and Ping Petroleum.

SilTerra's wafer blended average selling price has risen by more than 200% compared to same period last year.

Even if the cost cutting measures do not occur this year, profit is expected to jump to more than RM250mil - RM400mil.

FYI:
- SilTerra is running at more than 90% capacity since March 2021
- Cost cutting measures by selling directly to China and Foxconn will begin to reduce their costs

3. "Private placement one short done and over" - The difference between a good management and a bad management?
Good management raise cash to acquire quality assets, then turn them into cash generating assets before asking for more money.

Answer to some queries above:

1. "Despite the selling, price didn't go down drastically" - Yes, and this is because of the warrant disposal absorption mechanism by institutional investors and forengn investors

2. "Whether CIMB fund flow report indicates who are the buyers and sellers" - The type of institution (example: sovereign, proprietary, etc) is indicated.

Further rumours debunked:
3. Private placement of 30% will dilute share price significantly (Fact: Management has said that the 30% private placement is on a need basis and is it in batches)
4. Oil & gas industry is sunset industry
(Fact:
a. Achieving net zero emission and commendable ESG score is key for investors to assess. The remaining players in the industry has already been building carbon dioxide capture storage facilities that can be stored for decades for the oil & gas industry to achieve net zero objective.
b. China only expect local oil demand to surge until 2026 before beginning net zero objective, to achieve net zero only by 2060, which is 10 years later than the EU
c. The EU, expected to be the first coalition to achieve net zero by 2050, still expects fossil fuel to command 50% of total energy share by 2050).

Rumours debunked:
1. Warrants conversion will keep diluting share price (Fact: 98% of warrants has already been converted and is already traded in the market)
2. Rights issue (Fact: Dnex has large net cash even after paying for acquisition of SilTerra and Ping via cash from warrant conversion. Immediate cash outflow from 50% of Avalon is small (US$5mil).


Facts:
1. Foreigners were largest net buyers of Dnex despite being the major net seller for the whole bourse. (Source: CGS-CIMB fund flow report)
2. Institutional shareholders continue to be net buyers of Dnex for last week. (Source: CGS-CIMB fund flow report)
3. Retailers continue to be net sellers of Dnex after converting warrants to sell immediately desperately. (Source: CGS-CIMB fund flow report)

DNeX is not a penny stock by virtue of its market capitalization of RM2.2bil.

Share price depends on myriad of factors, but what is factual is that for the past 2 weeks, the net buyers of DNeX were Institutional Investors and Proprietary Funds while net sellers were retailers, based on CGS-CIMB fund flow report.

Noticed IMEC mentioned that - “We believe silicon is the perfect platform.”

and there is only one company on planet earth that possess and own the technology for application of Silicon Photonics by Optical Waveguides, which is Silterra.

Moore’s Law, which holds that the number of components on a silicon chip will double every two years, “is by no means slowing down,” albeit the means of achieving it will change to combine innovations such as new designs and types of transistors. That’s as well as continuing to go smaller: “we will go sub-one nanometer,” he said.

Van den hove sounded upbeat on the potential for the industry beyond existing areas. Chip technology could improve food production and monitoring, for example, he said. Then there are applications in life sciences which will create “an enormous boom,” in five years. “By combining some of these leading edge technologies you can do phenomenal new things,” he said.

That’s even in the face of growing geopolitical headwinds.

“Many things are happening in the world at this moment, but I think it’s very important that we remain calm,” said Van den hove. “The opportunities are so big.”

“But this is not the first case, we’ve had other cases with other people where they don’t behave according to our code of conduct and our values,” he said, adding that incidents are not confined to citizens of any one country.

Governments, too, are operating in an atmosphere of heightened sensitivity over technology.

The U.K. is now undertaking a national security review of the takeover of Britain’s biggest chip plant by Chinese-owned Nexperia NV. The Dutch government has yet to grant an export license to ASML to ship one of its most advanced machines to China, and the U.S. has made clear it favors the technology remaining in the Netherlands.

The Biden administration is likely focusing on imec in discussions with the European Union about broadening the U.S. alliance in the tech standoff with China, said Martijn Rasser, director of the technology and national security program at the Center for a New American Security in Washington.

“I would be stunned if they’re not,” said Rasser, who formerly worked on technology and innovation at the Central Intelligence Agency. “Imec is really a unique facility.”

The U.S. State Department had no immediate comment when asked about contacts with imec.

Asked if the Biden administration has reached out, Van den hove said there were “many discussions going on, on many of these topics,” but declined to say with whom. Imec, he added, is keen to “contribute in a positive way to progressing our industry, and so whatever we can do to support that, we will entertain those discussions.”
One area of future focus is the field of compound semiconductors. China is piling funding into developing what it calls third-generation chips, fabricated from compound materials such as gallium nitride, in an attempt to establish a lead without being dependent on U.S. silicon-based technology. Van den hove is skeptical the field will ever be more than a niche market for certain applications rather than a replacement for silicon.

“I don’t think standalone compound semiconductors is a huge market,” he said. “We believe silicon is the perfect platform.”

Today, imec participates in a scholarship program to fund post-doc researchers from China and, according to local media reports, in February became a member of the Wuxi municipal semiconductor industry association in Jiangsu province, a key chip-production area. But its presence in China is less than five people, and it doesn’t do any R&D there, according to Van den hove.

“The situation three or four years ago when that happened was very different from the situation today,” Van den hove said of the Li visit, when asked about the insertion of politics into the industry.

He added imec adheres strictly to export regulations, including those imposed by Washington, and insisted imec’s research capacity hasn’t been harmed by the political strains. “But we also have to be realistic and face the facts that these geopolitical tensions at this moment are increasing.”

Imec was founded in 1984 by the regional government of Flanders, and now has about 4,500 staff including research students. Some 75% of funding comes from its partners among the main chipmaking giants, from Intel Corp. and Taiwan Semiconductor Manufacturing Co. to Samsung Electronics Co. and Applied Materials Inc.

It has enjoyed a key relationship over the past thirty years with ASML, using the company’s lithography machines to become the leading research hub for what’s known as scaling: making chips with ever-smaller and more powerful features. Its facilities include a 2.5 billion-euro ($3 billion) “pilot line,” that allows researchers to work on chipmaking processes that are typically two-to-three generations ahead of the current leading-edge manufacturing. So whereas the most advanced chips in the world are measured at 5 nanometers, or billionths of a meter, imec is already working on 2nm and below.

Germany’s Fraunhofer institutes and CEA-Leti of France also conduct chip research in Europe, while TSMC cites the Semiconductor Research Corporation of the U.S. as a partner alongside imec. But the scope of the latter’s research is regarded as giving it a lead.

“Europe has two jewels,” Intel CEO Pat Gelsinger said in an interview in May. “One is ASML, the most advanced lithography, and the other is imec, the most advanced semiconductor research in the world.”


That work also makes it a target of industrial theft. Flemish newspaper De Tijd reported in 2018 that a Chinese researcher at imec was deported by Belgian authorities on suspicion of espionage. Van den hove confirmed the report, although he said the events occurred some time before then.

By Alan Crawford (Bloomberg)
July 13, 2021, 12:00 PM GMT+8 Updated on July 14, 2021, 3:08 AM GMT+8

The historic Belgian city of Leuven is known for its centuries-old university and as the headquarters of brewing giant Anheuser-Busch InBev NV. Less so as the location of a semiconductor research organization that is now the center of both political and industry attention.

The Interuniversity Microelectronics Centre, or imec, may be Belgium’s best-kept secret, but it’s in global demand for its work on the future of computer chips, with applications in areas from genome sequencing to autonomous driving.

It’s also increasingly in the sights of governments as chips become political weapons in the U.S.-China tech conflict. Crippling industry shortages during the pandemic have meanwhile set off a scramble for access to advanced research as the U.S., China, Japan and Europe all seek greater self-reliance in semiconductor production.

The European Commission is consulting with imec on its plans to build out the continent’s chip capacity. A South Korean ministerial delegation visited this month. It was name-checked in last month’s White House review of the U.S. supply chain alongside ASML NV of the Netherlands, which has a virtual monopoly on the machines needed to make the most advanced chips. In the words of one Washington observer, imec is one of those places very few people know about but which everyone should.

“We have never been so much in the spotlight as today,” Chief Executive Officer Luc Van den hove said in an interview in his office on the 15th floor of the futuristic imec tower, with 360 degree views of countryside just outside the historic town center. “We have received much more attention than ever before from the politicians: local politicians, European politicians, U.S. politicians.”

Chinese politicians, too. Premier Li Keqiang visited in October 2018 — before tensions over trade with the Trump administration expanded to chips — and stressed the “vast business opportunities” of working with “the world’s largest market,” according to an account of the visit posted on the Chinese government’s website.

Imec had previously joined with Huawei Technologies and Qualcomm Inc. to help China’s biggest chipmaker, SMIC, set up an R&D company. But within eight months of Li’s visit the U.S. Commerce Department added Huawei to its entity list and a cascade of export controls ensued, targeting China’s access to U.S. chip technology.

They do not need to incur significant capex cost in the near term as process nodes manufactured (180nm and 130nm) orders are surging worldwide.

One thing most people do not understand is Silterra's 180nm and 130nm process nodes are still very relevant in today's market (even more so for Electric vehicles, Data centres and 5G deployment).

Why? because wafer on 180nm process nodes are matured and proven technology. Even TSMC still produces 180nm process node wafers.

Incremental maintenance cost will only be incurred if the wafer machines breakdown. Even so, there is insurance coverage. Otherwise, there is always scheduled downtime for maintenance (non incremental, planned maintenance).

Also, PMUT on CMOS and Silicon photonics on optical waveguides is the company's patented technology.

If you are in the industry, you will know that IMEC was the one that approached Silterra to build and patent this technology in 2017 (as they foresaw a surge in applications for data centre in near future).

Now the silicon photonics on optical waveguides adoption has surged due to its benefits in saving energy cost by 15-20% in data centres compared to normal silicon photonics not on optical waveguides (that are developed by many large conglomerates).

Imagine, this company is the only one in the world that can produce silicon photonics on optical waveguides that is experiencing and will further experience burst in orders from major 5G players and data centre players.

It is only a matter of time DNeX breaches the RM10bil market capitalization (or even higher, when more people begin to understand how powerful Silterra is).

Based on SMIC's quarter 1 results will show that SMIC's 200mm wafer fab revenue increase by ~29% from Q420 to Q121 (almost entire increase due to increase in ASP instead of capacity, as SMIC's capacity has maxed out at 98% based on the disclosure). Note that SMIC's revenue are entirely 200mm wafer

Back to Silterra, at 64% capacity for 2020, Silterra achieved RM568mil revenue for 2020.

A simple back on the envelope calculation:
RM568mil / 64% x 92% (Current Silterra capacity) = RM816.5mil

Assuming 75% of Silterra's 200mm wafers had 20% ASP increase (conservative compared to SMIC):
(RM816.5mil x 75% x 1.2) + (RM816.5 x 25% x 1.0)
= RM939mil (Silterra 2021 conservative revenue)

How about profitability?
Note that Silterra is and has been EBITDA positive, which means that they are generating positive cash flows.
So why Profit after tax is negative? This is due to RM100mil depreciation per year.
However, after Silterra is acquired by DNeX, the useful lives of the assets of RM100mil book value will be re-measured (as machines for 200mm wafer fab have increased useful lives due to current market shortage)

Thus, depreciation will fall to RM10mil per year (based on RM100mil book value of assets)

Based on reduced depreciation, ASP and capacity increase, Silterra can easily turn the 2020's loss of RM64mil into profit of more than RM300mil from:

- Revenue increase by more than RM350mil
- Depreciation fall by more than RM80mil

In conclusion, Silterra's simple and conservative back of envelope calculation shows it could easily make RM150mil - RM250mil profit after tax this year.

Based on DNeX's 60% stake in Silterra, at 60x PE (Semiconductor), Silterra's value alone to DNeX is RM2.32

RM200mil (PAT) / 3.1bil shares (fully diluted) = RM0.039 (EPS)

60 PE x RM0.039 (EPS) = RM2.32

This is only current year earnings, not including Silterra's future growth prospects in MEMS and Silicon Photonics in Electric vehicles and Data centres.

This is the reason foreign investment banks and proprietary investment funds have been buying so confidently from retailers.

Due to many misinformation spread by less competent individuals above, there are a few facts to clarify:

1. Stock is heavy, thus price hard to rise - Outstanding WD not converted is 215mil WD's. Assuming all 215mil WD are converted by end of the month, the total share base of DNeX will be ~3.1bil shares.

2. Who are the sellers? - Based on CGS-CIMB report on fund flow, DNeX's recent share price rise in this week was due to proprietary buying. Proprietary buyers are funds that buy (not on behalf of investors), but direct buyers to earn gains for themself/the firm. These are mainly large investment banks

3. Net buyers for last 2 weeks and one month - institution and proprietary funds were net buyers while retailers were net sellers.

4. Assuming DNeX earns RM200mil for FY21 (RM80mil Silterra, RM70mil Ping, RM50mil Others), at conservative PE of 20x, DNeX is worth RM1.29. At peak valuation PE of 60x, DNeX is worth RM3.88

This explains why institution and proprietary funds kept mopping up DNeX shares from retailers.

For 2023 and beyond, Silterra's profit will increase to more than RM300mil (between RM300mil - RM500mil) due to maturity of silicon photonics and MEMS.

Both silicon photonics and MEMS are used by large global clients in Electric Vehicles and Data Centre

Note that Silterra has turned profitable for this quarter as semiconductor shortage continues to loom.

Silterra is expected to make further quarter on quarter profit increase as Average Selling Prices for 200mm wafer increase significantly.

Silterra is expected to make USD22mil EBITDA (or RM88mil) for 2021, and profit after tax of USD 13mil (or RM53mil)

For 2022, Silterra's profit is expected to increase more than double above RM150mil due to further increase in Average Selling Prices

For 2023 and beyond, Silterra's profit will increase to more than RM300mil (between RM300mil - RM500mil) due to maturity of silicon photonics and MEMS.

Both silicon photonics and MEMS are used by large global clients in Electric Vehicles and Data Centre

Note that Silterra has turned profitable for this quarter as semiconductor shortage continues to loom.

Silterra is expected to make further quarter on quarter profit increase as Average Selling Prices for 200mm wafer increase significantly.

Silterra is expected to make USD22mil EBITDA (or RM88mil) for 2021, and profit after tax of USD 13mil (or RM53mil)

For 2022, Silterra's profit is expected to increase more than double above RM150mil due to further increase in Average Selling Prices

Based on channel check, the DBT is from a major global semiconductor company.

As the matter is confidential, no further information on the DBT buyer has been disclosed.

Rumors amongst brokers is that the DBT buyer is Foxconn, as it is increasing their stake in DNeX as they try to increase their influence on SilTerra.

How MPI (Carsem) results improved significantly due upon collaboration with Silterra for MEMS on CMOS:

https://www.silterra.com/media/external/emerging_pmut/pdf/6John_Miranda_Carsem.pdf

Based on sources, DBT performed today at a premium is by a large reputable semiconductor company with global presence.

Global funds and large conglomerates had begun to take notice of Silterra's PMUT on CMOS for silicon photonics on application for data centers.

Given that this technology can only be produced by Silterra, global funds do not want to miss the fun or FOMO.

Note that PMUT on CMOS is patented as Silterra's technology.

No other wafer fabricators in the world (TSMC, Globalfoundaries) is able to reproduce this technology.

The PMUT on CMOS core technology is the enhancer for silicon photonics application in data centers and potentially electric vehicles.

This core technology enables the transfer for power between 2 points using light.

The benefits has been proven (application use has began) to save power/electricity cost by 10-15% on high tech/specs advanced data centers.

It's application for EV is almost complete and final testing has proven that it is able to save battery power by 10-15%.

Note that this can only be produced by Silterra.

No other players in the world is able to produce this technology. Although large players may invest in R&D to produce this technology, it is unlikely in the near term due to worldwide chip shortage.

Silterra's patent on Monolithic Integration of PMUT on CMOS creates a high barrier of entry for the most powerful incumbents TSMC and Intel.

The Monolithic Integration of PMUT on CMOS for application uses for MEMS creates a new dimension of wide application for 200mm wafer fabs on silicon photonics.

Based on one of Silterra's customer - Nokia's silicon photonics sales and growth, the revenue and bottomline numbers for Silterra is expected to be explosive, with a conservative bottomline spike of more than 300%-400%.

https://patents.justia.com/patent/20190100427

jk20598, Silterra is already profitable for quarter ended March 2021. EBITDA recorded of US$4.1mil (RM17mil) and Net profit attributable to owners of RM11mil.

Net profit is expected to be significantly higher due to lower depreciation amount post acquisition by DNeX (As the remaining value of the PP & E will be depreciated over a revised useful life), but generating even higher revenue.

Based on that, on average Silterra will be able to generate RM15mil - RM30mil per quarter for FY21 and jumping to RM30mil - RM50mil for FY22 onwards (due to increase in ASP)

It is only logical for Foxconn to up it's stake in DNeX to increase their presence and influence on Silterra.

Based on Foxconn's EV ambition, Silterra forms the key part of Foxconn's solution to this puzzle.

There are reliable rumors that Foxconn has already been upping it's stake in DNeX, as their initial purchase has led to key industry players to be aware of this prized asset in South East Asia.

Due to the massive shortage of 200mm wafer chips worldwide, other key players may acquire DNeX shares leading to Foxconn having lesser influence.

This has potentially led to Foxconn upping their stake in DNeX to cement a dominant influence on Silterra to avoid it falling into the hands of competitors.

Including the expansion, Silterra is worth over RM15bil.

60% DNex stake would bring DNex to a valuation of over RM10bil or RM3 (Fully diluted warrant conversion and private placement)

Global demand for 200mm wafer fabs will remain robust for this decade, driven by surge in demand from IoT, life sciences and automotive sector, particularly on electric and smart vehicles.

Silterra will benefit greatly and is visible by existing wafer capacity operating at 95%.

At full capacity and increase in ASP of 200mm wafer fabs since December 2020 (More than 50% increase), Silterra's EBITDA is expected to reach RM100-RM150mil.

Prescribing a 80% discount to TSMC's NTM EV/EBITDA of 15.8x, Silterra's valuation is RM1.9bil.

However, using FY23's EBITDA or Projected EBITDA of US$75mil (RM310mil), Silterra's valuation is RM5-6bil, using a discount to TSMC's FY23 EV/EBITDA.

Note that this excludes:
- Expansion of wafer fab capacity by double in FY23.
- Dominant position in MEMS and Silicon Photonics by FY23-FY25
- Scarcity premium of 200mm wafer fabs in ASEAN

Just filed police report against Huat huat 2020 and Gem Seeker (both users are same person) on grounds of malicious content, fake content, creating and spreading fake news and public nuisance on public forum.

Hope action will be taken soon.

KPMG is a good audit firm with good governance, not shoplot firm

1. Always do what is right no matter how difficult

2. Never retaliate against office gangster remarks

3. Always behave with high professionalism despite being called names

4. Never retaliate against shoplot auditor remarks

KPMG has gained the respect of many. Salute to KPMG.

KPMG is a good audit firm with good governance, not shoplot firm

1. Always do what is right no matter how difficult

2. Never retaliate against office gangster remarks

3. Always behave with high professionalism despite being called names

4. Never retaliate against shoplot auditor remarks



KPMG has gained the respect of many. Salute to KPMG.

The more the shoplot chairman tries to bad talk KPMG, the worse it is for the shoplot chairman
Investors and market always judge fairly, not gangsterly.

May end up as a shoplot company

KPMG is smart:

1. Resign
2. Show evidence of their work in court
3. If right (win money), if lose (pay need to pay money using insurance)
4. KPMG still continue as a globally recognized brand
5. Did not sign a financial report that they are not comfortable with

As for Serba:

1. Need to find new shoplot auditor (take time)
2. Need to perform new shoplot audit (take time)
3. Need to issue clean financial report for refinancing bank loan
4. By the time finish all banks doubt on providing further financing
5. Large institution investors all lost confidence (because IIC call 3 times also never answer)
6. Need to find time and effort to convince institutional investors (cost more money)

Not advance membrane technology? =)


Gtrade AUDITOR: WHY your $100m client business address at workers quater?
CEO : OH has moved his business office to bigger office,after making millions
AUDITOR: SO where is his new office?
CEO : WAIT ar, we going to use our space technology to trace his new office location
24/06/2021 11:59 AM

i3lurker, heard that Botswana or Congo also can try


i3lurker Only Auditors from Somalia, Yemen and some say South Sudan may agree to sign off once appointed with Emergency Powers, some doubts there too...whether they will sign off

leno KPMG refuse to give any qualified report on Sebak FRAUD accounting.
KPMG has requested for 3rd party to verified the FRAUD accounting.
Bursa and Securities Commission already agreed with KPMG.
Share holders, KWPS, KWAP, also want 3rd party investigation.

Sebak is standing alone.
24/06/2021 10:58 AM
24/06/2021 11:06 AM

leno, that's why the CFO is important.

If CFO only know how to throw tantrum in analyst briefing but don't know how to take photo and upload materials on site..

Any intelligent CEO also will fire.

Only shoplot CEO and Chairman won't fire such childish CFO


leno Sebak director BODOH ...
KPMG querry your material at site, u just call up the supervisor and ask him to take photo and upload the material at site to i3 forum mar ... then we can help u to promote.
24/06/2021 9:54 AM