Nan Ya Chairman Wu Chia-chau: Two Reasons for Nanya PCB Share Sale, Holding onto Nanya Technology

Central News Agency, Taipei, May 29. With Artificial Intelligence (AI) driving shortages and price hikes in memory and ABF substrates, Nan Ya Plastics is not only engaged in electronic materials but also holds two key subsidiaries, Nanya PCB and Nanya Technology. The company's moves regarding share disposals in these subsidiaries have drawn significant market attention.

Wu Chia-chau, President of Formosa Plastics Group and Chairman of Nan Ya, stated at today's shareholders' meeting that Nanya Technology's performance is excellent. Although Nan Ya announced a board resolution in early March to dispose of 1% of its holdings in Nanya Technology, no shares have been sold to date.

Regarding Nanya PCB, Nan Ya announced a second share disposal plan in mid-May, intending to sell 19,385,000 shares. Wu explained two main considerations for this sale. First, Nan Ya's stake in Nanya PCB is disproportionately high. Even after the second disposal, Nan Ya will still hold approximately 61% of Nanya PCB. For a listed company, such a high concentration of ownership by a major shareholder is rare. Nan Ya hopes to increase the number of shares in circulation to allow more shareholders to participate in the company's operational success.

Secondly, Wu explained that Nanya PCB specializes in ABF and BT substrates. As technology advances rapidly, it relies on Nan Ya's supply of CCL (copper-clad laminates), copper foil, and glass fiber cloth to drive development. By selling Nanya PCB shares, Nan Ya can secure more capital to develop higher-end electronic materials, which in turn supports Nanya PCB's technological advancement.

Beyond electronic materials, Wu emphasized that Nan Ya continues to upgrade and transform in multiple directions, currently focusing on three major areas: medical, semiconductors, and power.