Foxconn and Yageo JV invests in Taiwan MOSFET manufacturer
Hon Hai Technology Group (more commonly know as Foxconn) and Yageo Group have – via their joint venture XSemi – invested NTD 2.89 billion (EUR 91.6 million) in Taiwanese MOSFET manufacturer Advanced Power Electronics Corp.
Foxconn and Yageo pooled together NTD 3.1 billion (EUR 98 million) into XSemi in a capital increase. XSemi in turn invested EUR 91.6 million into Advanced Power Electronics Corp. (APEC) in private placement, becoming the largest shareholder with 35 million shares, or 30.08% of the company, a press release reads.
After this round of the financing, Foxconn will become the majority owner of XSemi with 51% holdings, while Yageo and its related companies will have 49%.
Hsinchu based XSemi was formed as a joint venture between the EMS-giant and Yageo last year – as part of a strategy to deepen the companies footprint in the semiconductor space. XSemi is an IC design company specialising in analog and power semiconductors, primarily focusing on the automotive and industrial sectors.
With a strategic collaboration with APEC on the table, XSemi will be able to expedite its business development and strengthen its product portfolio and customer reach. Especially considering that the Taiwanese manufacturer has developed comprehensive MOSFET product line with over 1,000 SKUs.
"APEC’s products will also complement highly with XSemi’s internally developed power management IC, SiC chips and modules as total solutions to provide to not only Hon Hai and YAGEO’s existing and future customers," the press release continues.
"Semiconductor has been one of the three key technology pillars of Hon Hai," says Hon Hai Chairman Young Liu, as he explains that the company over the past year sped up its progress in the semiconductor space.
"On top of XSemi’s participation through its analog and power products on the auto collaborations, its power module has also shown great progress. With the private placement of APEC, XSemi will be able to fill the gap in its low to high voltage silicon MOSFET product line, and this will provide steady semiconductor supply for the two groups’ future strategic focus in industrial and automotive."
The aim for XSemi is to continue to expand its product portfolio and strengthen its product competitiveness. The over all goal is to be one of the key global analog and power semiconductor providers.
"Our alliance with APEC is to capture the upcoming opportunities in analog and power semiconductors. Once the products are ready, we believe that we can quickly deliver them to the customers through Yageo's extensive global channels." concludes Yageo Chairman Pierre Chen.