A player in the semi-conductor industry conducted OSAT, researched and backed by D&B’s appraisal expertise

The clients intended to raise fund in form of term loan from financial institutions. D&B India was appointed to undertake independent appraisal of the projects. The assignment had 3 different projects for independent appraisals.

Challenges faced by the client

The client was operating in the semiconductor industry, specifically in the Outsourced Semiconductor Assembly and Test (OSAT) segment. Being a capital-intensive sector that requires significant upfront investment in infrastructure, technology, and skilled labor, the client aimed to raise funds through term loans from financial institutions. An independent appraisal was essential to build lender confidence and support the loan application process.The client was operating in the semiconductor industry, specifically in the Outsourced Semiconductor Assembly and Test (OSAT) segment. Being a capital-intensive sector that requires significant upfront investment in infrastructure, technology, and skilled labor, the client aimed to raise funds through term loans from financial institutions. An independent appraisal was essential to build lender confidence and support the loan application process.

Internal challenges

The client faced significant internal hurdles in fundraising initiative. These included the need to develop a comprehensive and credible project plan that could withstand scrutiny from financial institutions. Internally, they had to ensure that their operational capabilities, technical expertise, and financial projections were robust and well-documented. Aligning cross-functional teams was essential to present a unified and compelling case.

External challenges

Externally, the client encountered skepticism from financial institutions due to the capital-intensive nature of semiconductor projects and the perceived risks associated with the OSAT segment. Market volatility, rapid technological evolution, and global competition added layers of complexity

How D&B helped?

D&B India conducted an independent appraisal of the client's semiconductor projects to support their loan application. This included market and technical assessments, capital expenditure review, financial viability analysis, and risk evaluation. Their comprehensive report helped validate the project’s feasibility and build lender confidence.

Key learnings

• Detailed Market Study
• Technical Assessments Covering Different Client Requirements