Tong Hsing Electronic Industries Ltd (同欣電子), which provides microelectronic module assembly and packaging as well as thick-film/thin-film substrate foundry services, plans to acquire Kingpak Technology Inc (勝麗) in a bid to increase its economies of scale through a larger product portfolio and enhance its competitiveness in the market.
Kingpak is a testing and packaging service provider of automotive complementary metal-oxide-semiconductor (CMOS) image sensors.
Tong Hsing, based in New Taipei City’s Yingge District (鶯歌), plans to acquire all of the shares in Kingpak, which is headquartered in Hsinchu County’s Jhubei City (竹北), after its board of directors approved a share-swap deal, the company said in a Taiwan Stock Exchange filing on Friday last week.
In the filing, Tong Hsing said it plans to issue 72.27 million new shares to exchange for Kingpak shares, with the share swap ratio set at one Kingpak share per 1.244 Tong Hsing shares.
Tong Hsing shares closed at NT$151 on the Taiwan Stock Exchange and Kingpak traded at NT$164 on the Taipei Exchange on Thursday.
The firms hope to complete the deal by June 30 after approval from the authorities and expect to seize emerging opportunities in the smartphone, advanced driving, the Internet of Things, the Internet of Vehicles, virtual reality and augmented reality markets, the filing said.
“The two companies have little overlap in customers and products, but they are highly complementary,” Tong Hsing president Heinz Ru (呂紹萍) said at a press conference at the Taiwan Stock Exchange on Friday.
Tong Hsing, which has exposure to metalized ceramic substrates and the image-sensor back-end business for consumer electronics, reported a net profit of NT$495.32 million (US$16.4 million) in the first three quarters of this year, down 31.1 percent from NT$718.85 a year earlier, with earnings per share (EPS) of NT$3.
Consolidated revenue decreased 1.35 percent year-on-year to NT$6.75 billion in the first 11 months of the year, company data showed.
Kingpak, established in 1997, is a niche CMOS image sensor packaging company. The company has in recent years explored the advanced driver-assistance system business to develop new packaging technology that is thinner and lighter, with high reliability and cost competitiveness in order to meet market requirements.
The firm’s revenue in the first 11 months increased 0.57 percent annually to NT$2.1 billion, while net profit in the first three quarters fell 36.64 percent to NT$229.27 million, with EPS of NT$4.46.
Kingpak is to become a wholly owned unit of Tong Hsing and be delisted from the Taipei Exchange when the merger is completed in June next year.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS