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In April 2004, Lee Joon Chung (JC Lee), President and Chief Executive Officer (CEO) of United Test and Assembly Center Limited, Singapore (UTAC), announced the acquisition of UltraTera Corporation (UTC), a Taiwan-based semiconductor test business. With the acquisition, UTAC became the world's fifth largest test service provider for the semi-conductor industry based on sales. The UTAC management hoped to gain synergies in product portfolio, cost and capital investments on facilities, and access to Taiwan's markets. The acquisition could also strengthen UTAC's intellectual property portfolio. The management's valuation of UTC at US$476 million and the share swap ratio (1.6 UTAC shares for every UTC share) was based on UTC's 2004 profit estimates. Three months after the announcement, UTC issued a performance alert. By July 2004, when the management of both companies agreed to revise the terms of the acquisition, the semiconductor industry had entered a downturn, demand slowed, global chip manufacturers and Taiwanese semiconductor assembly and test services (SATS) players began to migrate to China. With UTAC operating in a highly cyclical industry, its management wondered on the options to manage business risk and growth.