According to a report from the Taipei Times, Motech Industries has terminated long-term supply contracts for silicon wafers with an undisclosed foreign company. The stock exchange filing noted that the termination came because of a change in market conditions. Motech advised that it would renegotiate terms, including product quantities and prices with the undisclosed company, but no timeline was given for when the manufacturer would start to supply wafers to Motech again.
“As for the company’s decision to renegotiate terms and prices with the customer this time, the company will book the financial discrepancy from previous estimates in this quarter’s financial report,” Motech said. “The termination of the contracts is not expected to have a significant impact on the company’s finance and business.”
Motech noted in its stock filing it had included the write-offs of losses sustained from its long-term material supply contracts in last year’s financial report, based on generally accepted accounted principles.