European mixed-signal, RF and power management IC company Dialog Semiconductor plc plans to take a 40 percent stake in Dyna Image, a wholly-owned subsidiary of Lite-On Semiconductor in a deal that will close in June 2015. ShunSin Technology Holdings Ltd., a subsidiary of Hon Hai Precision Industries Co. Ltd., which trades as Foxconn, is also set to take an equity position in Dyna Image (New Taipei City, Taiwan), which is already selling optical, inertial and environmental sensors into China.
Dyan Image was created as a wholly-owned subisidiary of Lite-On Semiconductor in 2011.
It is also notable that an attempt to merge Dialog with Austria’s AMS AG, which would have brought access to similar sensor technologies, failed in 2014 (see AMS, Dialog merger talks fail). This deal can be seen as an alternative implementation of Dialog’s strategic goals that adds sensor capability to Dialog’s portfolio while improving its access to Chinese markets.
The value of Dialog’s investment and whether it would be made in cash or stock, was not disclosed but after the deal closes Dialog will be the largest shareholder. This implies that the remaining 60 percent will be split more or less equally between Foxconn and Lite-On.
Foxconn’s holding will be made through ShunSin Technology (Zhongshan) Ltd., part of its subsidiary ShunSin Technology Holdings Ltd.
The aim of the venture is to accelerate Dialog’s entry in to China’s consumer electronics markets and the adoption of Dyna Image’s sensors in the smartphone and Internet of Things markets. The combination of Dyna Image sensors, Dialog’s power management and Bluetooth ICs and ShunSin’s packaging expertise should enable Dyna Image to develop and supply innovative smart sensing systems, Dialog said. This can translate into increased system content for smartphones, wearables and smart digital lighting devices.
Dialog CEO Jalal Bagherli and senior vice president Mark Tyndall will join the board of directors of Dyna Image. Sean Li from Lite-On Semiconductors will lead the joint venture as CEO.
Dialog Semiconductor will work closely with Dyna Image on the development of sensors and sensor solutions for smartphones and IoT applications, including those for wearable devices. These technologies will initially include sensors for ambient light and proximity as well as colour and gesture analysis.
“This investment represents Dialog’s first foray into the sensor market. We’ll become closely involved with technologies that complement our power management, audio and Bluetooth expertise in smartphone, IoT and smart lighting applications,” said Jalal Bagherli, CEO of Dialog Semiconductor, in a statement.
“It’s another important step in our strategy to gain market share in the fast growing Greater China smartphone and IoT markets through innovative local business partnerships. We’ll continue to bring our customers best-in-class technology and help them integrate it quickly and reliably into their designs to improve performance, cut costs and reduce time-to-market.