Amtech to exit solar, expand semiconductor strengths

US equipment manufacturer Amtech Systems Inc (NASDAQ:ASYS) intends to divest its solar business and focus on its other segments serving the semiconductor and LED industries.

The company’s solar operations cover the production of equipment for silicon power chips and solar cells and also include its Tempress and SoLayTec subsidiaries. Chairman and CEO JS Whang, Chairman explained that “significant investment” is needed to enable the company to “effectively compete in the changing solar industry.”

Following a thorough review of its business, initiated last November, Amtech has decided that its combined Semi and silicon carbide (SiC) and light-emitting diode (LED) polishing business offer better market opportunities for enhancing the group value.

The divestment is expected to help the firm boost investment in the chip substrate, chip fabrication and chip packaging and SMT semiconductor value chains, as well as to enhance its positions on the high-end power chip market. Additionally, it will be able to improve its cash flows and earnings as it will no longer record losses from solar operations.

"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," commented chief operating officer Michael Whang.

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