ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Markets

Thai chip designer plans IPO to fund R&D for 5G applications

Silicon Craft expects surge in demand, especially for animal tags and motion sensors

Thailand's Silicon Craft aims to be the world's No. 1 animal tag microchip supplier within four years.   © Reuters

BANGKOK -- Thailand's leading microchip designer Silicon Craft Technology has announced its plan to debut on the country's stock exchange following the subscription period later this month.

The Bangkok-based company is poised to expand its development capability, as it expects the spread of fifth-generation (5G) telecom technology will push up demand for microchips for internet of things applications. The chip company is putting particular focus on chips for animal tagging.

Chief Executive Officer Manop Dhamsirianunt said the funds to be raised from the initial public offering will be used in research and development on its core products -- car immobilizers, radio-frequency identification chips and animal tags.

"[We] plan to expand our microchip business substantially over the next few years as we aim to be the world's No. 1 animal tag microchip producer within the next four years," said Manop. He did not provide details on how much money the company expects to raise from the IPO. 

The company plans to offer 100 million shares equivalent to 25% of issued and paid-up shares. The company will be listed on the Market for Alternative Investment, a stock market for small and midsize companies established by the Stock Exchange of Thailand in 1998.

That suggests the amount of funds expected to be raised is between 50 million baht ($1.6 million) and 300 million baht, since an IPO worth more than 300 million baht would be listed on the main board of the stock exchange. 

Founded in 2002 by a group of integrated circuit specialists with registered capital of 5 million baht, Silicon Craft reported 24.5 million baht in net profit on revenue of 308.8 million baht for the year ended in December. 

The company also expects rising demand for microchips for motion sensing systems, which are expected to be used widely in factory automation in the next few years.

"We are in the 5G era, when everything will be controlled by microchips, ranging from tracing animals by tags to self-driving cars controlled by microchips and motion sensors. It suggests that demand for microchips will rise sharply," said an analyst a Kasikorn Research Center.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media