Foxconn chip venture takes stake in power MOSFET maker
Contract manufacturer Hon Hai Technology Group, which trades as Foxconn, and Yageo Group are jointly investing NT$2.8868 billion (about US$100 million) in power MOSFET manufacturer Advanced Power Electronics Corp.
The companies are making the investment through their joint venture XSemi Corp. (see Foxconn, Yageo form semiconductor joint venture XSemi). XSemi becomes the largest shareholder in APEC with 35 million shares or 30.08 percent of the company.
XSemi’s investment is being funded by a NT$3.1 billion (about US$105 million) capital increase from Foxconn and Yageo. As part of this capital increase Foxconn will become the majority owner of XSemi with 51 percent while Yageo and related companies will hold 49 percent. At the same time, Hon Hai’s chairman Young Liu and Yageo’s chairman Pierre Chen are nominated to become XSemi’s chairman and vice chairman, respectively, with immediate effect.
XSemi is an IC design company specializing in analog and power semiconductors, primarily focusing on the automotive and industrial sectors with the intention of serving Foxconn, the leading electronic manufacturing services company with 40 percent market share. Yageo is a passive component provider covering resistors, capacitors, and inductors.
By making a strategic collaboration with APEC, XSemi will strengthen its ability to provide customers with a steady, highly reliable, comprehensive product solutions and services, Foxconn said.
“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’ [Foxconn and Yageo] future strategic focus in industrial and automotive,” said Young Liu.
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