Powerchip Technology Corporation is holding a shareholder meeting on November 25 to elect seven directors and three supervisors, amid a governance battle triggered after founder Huang Chung-jen's death. Management distributed NT$1,088 Burger King vouchers through proxy solicitation channels to secure voting support from minority shareholders. The battle erupted because control of Powerchip's board determines voting rights over the company's 17.55% stake in listed wafer foundry Nexchip (6770), making it the largest single shareholder. Management launched multiple defense measures including a NT$1 billion treasury stock buyback at NT$42 per share, a NT$1 billion public tender offer by founder family vehicle Shan Yi Investment, and filed criminal complaints against the market faction. Taiwan's semiconductor industry is watching this proxy fight closely, as the outcome will reshape ownership structure and strategic direction of both Powerchip and its publicly traded subsidiary Nexchip.

Management Distributes NT$1,088 Burger King Vouchers and Launches Defense Measures

Powerchip Technology Corporation's management distributed NT$1,088 Burger King vouchers through proxy solicitation firms including Quantum Securities and Long Dragon to secure minority shareholder support ahead of the November 25 shareholder meeting. The company launched a NT$1 billion treasury stock buyback program at NT$42 per share. Shan Yi Investment, the vehicle controlled by founder Huang Chung-jen's family, committed NT$1 billion for a public tender offer. Management filed criminal complaints at Taipei District Prosecutors Office alleging the market faction violated public tender offer regulations. The shareholder meeting agenda includes amendments to company bylaws related to future listing on the Emerging Stock Market and eventual full listing.

Market Faction Led by Lin Wei-cheng Proposes NT$13.6 Billion Tender Offer

The market faction is led by Lin Wei-cheng, a semiconductor industry specialist who worked at Vanguard International Semiconductor for 20 years. Lin served as convener of the "Powerchip Listing Self-Help Association" 8 years ago, when he assembled proxy votes representing approximately 20% of shares from over 3,000 minority shareholders and won election as a director with the second-highest vote count. The current market faction includes Lin Yi-shan, chairman of listed technology company Xiang Yao Enterprise (6244), and has nominated a complete slate of director and supervisor candidates. The market faction is soliciting shares at NT$50 per share through online communities and Hua Yong Company, targeting acquisition of over 20% of shares within 50 days for a total of approximately NT$13.6 billion. The faction criticizes Powerchip's holding company structure, stating that dividends from Nexchip and profits from selling stakes in China-based Hefei Nexchip face double taxation at the holding company level, while incurring several hundred million NT dollars in director and supervisor compensation.

Shareholder Meeting Outcome Determines Control of Nexchip's 17.55% Stake

Powerchip Technology Corporation holds 17.55% of shares in listed wafer foundry Nexchip (6770), making it Nexchip's largest single shareholder. Control of Powerchip's board through approximately NT$10 billion in investment effectively grants control over voting rights for Nexchip's 17.55% stake. If management retains control, the current team will proceed with plans to list Powerchip on the Emerging Stock Market and pursue full listing while maintaining the existing group structure. If the market faction wins board seats, the faction may adjust Powerchip's positioning or dispose of Nexchip shares to realize value for shareholders, which would trigger significant shifts in Nexchip's shareholding structure.

FAQ

What is happening at Powerchip Technology Corporation on November 25?

Powerchip Technology Corporation is holding a shareholder meeting on November 25 to elect seven directors and three supervisors. Management distributed NT$1,088 Burger King vouchers through proxy solicitation channels to secure minority shareholder votes, while also launching a NT$1 billion treasury stock buyback at NT$42 per share and filing criminal complaints against the market faction.

Why does control of Powerchip Technology Corporation matter for Nexchip?

Powerchip Technology Corporation holds 17.55% of shares in listed wafer foundry Nexchip (6770), making it Nexchip's largest single shareholder. Control of Powerchip's board determines voting rights over this 17.55% stake in Nexchip, meaning the November 25 shareholder meeting outcome will directly affect Nexchip's ownership structure and strategic direction.

Who is leading the market faction challenging Powerchip's management?

The market faction is led by Lin Wei-cheng, who worked at Vanguard International Semiconductor for 20 years. Lin previously served as convener of the "Powerchip Listing Self-Help Association" 8 years ago, when he assembled proxy votes representing approximately 20% of shares and won election as a director. The current faction includes Lin Yi-shan, chairman of listed company Xiang Yao Enterprise (6244), and is soliciting shares at NT$50 per share for a total of approximately NT$13.6 billion.

View Source

Disclaimer: This content is for informational purposes only and does not constitute investment advice or encourage the buying or selling of crypto assets. It is intended to provide information about industry developments and is not directly related to the services offered by Gate TR. Although information obtained from third-party sources has been carefully reviewed, Gate TR assumes no responsibility for any errors or omissions. Crypto assets involve high risks and may experience significant price fluctuations. Before making any investment decisions, you should assess your financial situation and risk tolerance, conduct your own research, and make decisions independently.