Delta acquires Alps Alpine's power inductor business
Power management specialist Delta has signed an agreement to acquire the power inductor and powder materials business and assets, including production and R&D equipment, patents, and intellectual property of Japanese company Alps Alpine and its subsidiary, Alps Electric Korea, for approximately USD 71 million.
Alps Alpine's powder material patent technology helps create power inductors with low power loss, improving the energy efficiency of devices and equipment.
After the acquisition is completed, Delta expects to integrate Alps Alpine's power inductor business in Japan and South Korea, combining their R&D capabilities, production facilities, and customer resources to enhance the capabilities of its passive components for data centres, AI high-performance computing, edge computing, electric vehicles, smartphones, and next-generation ICT products.
"Delta's world-leading power inductor technology is also gaining substantial ground in the AI server and electric vehicle realms. Alps Alpine offers one-of-a-kind intellectual property in the field of power inductors and is also an industry-leading provider of innovative technologies. With this acquisition, we aim to create synergies to ultimately enhance Delta's patent and supply chain capabilities in benefit of our business development. By combining our own growing R&D capabilities in Japan with Alps Alpine's, we will accelerate the development of innovative products and technologies," says Ping Cheng, Delta's Chairman and Chief Executive Officer, in a press release.
The scope of the transaction involves the assets and equipment related to the power inductor under the "Sensor & Communication" business, with product applications including AI high-performance computing, smartphones, wearable products, solid-state drives (SSD), double data rate (DDR) devices, and more.
"Besides being a significant enterprise in the fields of sensors and communications, and in automotive systems, Alps Alpine also leads the industry with its original unique magnetic metal material, which is featured as 'an amorphous material with a supercooled liquid region', a state-of-the-art technology that contributes to low Iron Loss and high Saturation Flux density for the electronics components sector. In the field of power inductors, Delta holds a reputable position in terms of technology, production capacity, and quality. As Alps Alpine's power inductor business grows, it needs resources to scale up quickly, so we believe that after integrating this business, Delta will accelerate the growth of its passive components segment," adds Hideo Izumi, Alps Alpine's President & CEO.
