<Hsinchu, Taiwan – January 3, 2017> Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading ASIC design service and IP provider, today announced its Board of Directors, considering the Company’s development strategy and focus on core business, resolved the disposal of assets for its surveillance SoC business to Novatek Microelectronics Corporation (TWSE: 3034) at NT$720 million.
Faraday’s core businesses are ASIC and IP. Considering the business essence and overall synergy, the Company decided to undertake this transaction to focus on the relatively competitive businesses. As the Company continues to implement operational restructuring, this transaction is the initial step of its transformation strategy. Currently, Faraday’s arrangements for both IP and ASIC businesses have been well positioned. Going forward, it will refocus R&D resources on enhancing profitability while maintaining long-term competitiveness through appropriate strategic investments. The Company believes that focus on core business will bring positive influences for its cost structure, gross margin and operating expenses.
Faraday management team effectively enhances the product mix through the continuous focus on high value products. The Company will keep concentration on its core competence, aiming to improve the overall profitability and values with the flexible business models.