TAIPEI (Reuters –Taiwan’s GlobalWafers Co Ltd announced on Sunday that funds from a failed 4.35 Billion Euro ($4.98 Billon) takeover by Siltronic, a German supplier of chip suppliers, will be diverted to capacity expansion.

GlobalWafers stated in a statement that it expects total capital expenditures to exceed T$100 Billion ($3.6B) by 2022-2024. This includes “substantial greenfield investment”.

The Siltronic purchase originally funded by the original proceeds were now used to pay capital and operating costs, it said.

CEO Doris Hsu stated that while the Siltronic offer was not accepted, she had pursued a dual track strategy since the beginning of the tender. I am excited to be able to consider a wide range of options now in order for technology advancement and enhancements.

The company stated that the expansion plan included investments in Asia and Europe as well as the United States.

It said that the new production lines will be ramped up during the second half next year and expanded quarterly.

Hsu did not give any details and cited confidentiality.

A global shortage in semiconductors is causing Europe to be dependent on Asian suppliers. This has led to recent attempts at increasing production.

The Economy Ministry of Germany stated that it is not possible for all steps to be completed in the investment review. This includes a review of an Antitrust Approval granted by China last month.

China’s market regulator stated on January 21 that the acquirer would be granted conditional approval.

Hsu said that the deal was invalid because China had made its decision too late for Germany. However, he refused to speculate on the possibility of continuing talks with Germany about this issue.

“Everyone’s guessing. We were told that we didn’t have enough time to complete the deal. She was asked about other factors such as protectionionism.

Siltronic’s majority shareholder Wacker Chemie owns a 30.83% share in Siltronic. Wacker Chemie said that it regrets the economic ministry’s decision and stated it would still sell the remaining Siltronic shares in the medium term.

As the industry consolidates, the deal would have made Shin-Etsu Japan the second-largest manufacturer of wafers measuring 300-millimetres.

Germany’s high-tech supply networks have been subject to disruptions after the crisis in global chips.

Renesas Electronics Corp. recently purchased Dialog Semiconductor from a Japanese buyer. This was a recent acquisition of an European semiconductor company.

GlobalWafers acquired a majority share in Siltronic in the last year. They initially planned to close the deal in 2021.

($1 = 0.8736 euros)

($1 = 27.7990 Taiwan dollars)