Global Communication Technology Corp. (GCT), the Taiwan-based GaAs MMIC foundry service provider, will merge with one of its major competitors, WIN Semiconductors Corp. (WIN). The shareholders meetings of the two companies met separately to approve the definitive merger agreement and confirm an equity swap at a 1:1.6 ratio (1.6 shares of WIN for every 1 share of GCT).
The merger has considerable synergy as both companies bring complementary business and technology strengths that will enhance foundry service offerings. The combination of expertise and facilities should enable the merged entity to reduce cost, integrate resources, optimise operation scale and enlarge its market in the GaAs MMIC segment. The merged company will maintain two sites of 6-inch GaAs fabs to provide more technological options and surety of supply to customers.