Taiwan-based Sino-American Silicon Products (SAS) on April 14 announced plans to create two independent companies by spinning off its semiconductor wafer and LED sapphire substrate businesses.

The move is to allow each of the businesses to be more focused on their targeted markets with the ability to potentially expand in the future, according to SAS.

The spin-off is scheduled to take effect on October 1, 2011, subject to approval by the companies' shareholders.

SAS shares closed up 5.8% at NT$127 (US$4.38) on the Taiwan Stock Exchange (TSE) on April 14.