Red rice foundry acquisition of Holland chipmaker: strengthening semiconductor strength

Red rice foundry acquisition of Holland chipmaker: strengthening semiconductor strength

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China's Wentai Technologies is planning to buy 75.86% of Nexperia, a Dutch chip maker, for 25.2 billion yuan ($3.6 billion), according to Bloomberg.

NXP sold its stake in Anshi Semiconductor to a consortium of Chinese investors in 2016. Wentai Technologies has consolidated control of the Dutch chip maker in the name of a company that assembles devices for Huawei, Lenovo and Millet's smartphone brands.

The acquisition of Nexperia, which has recently blocked several high-profile deals, requires the approval of the U.S. Foreign Investment Commission (CFIUS).

Wentai Technologies claims to be one of the world's largest smartphone manufacturers, but its reputation in the technology industry is small. The company was founded in 2006 by Zhang Xuezheng, a former engineer of ZTE and then an executive. Like Hon Hai Precision Industries Ltd., a mobile phone assembler, the company manufactures equipment for other brands, such as millet's low-end mobile phone brand red rice.

But now, the company is trying to strengthen its semiconductor technology, including chip design, manufacturing and packaging. The company also said it would set up R & D centers in Shenzhen, Xi'an and Shanghai.

Wentai Technologies has yet to fully describe its funding for the acquisition of Andersen Semiconductor, which will provide components such as diodes and logic packages for automotive and industrial customers. On Tuesday, the company said it would issue up to 127.45 million shares to raise 4.63 billion yuan --- but that was only a fraction of the initial cost.

In April, the company briefly disclosed the deal, and then the stock was suspended, with a market value of 19.4 billion yuan. Wen Tai technology has said that the company's revenue in 2017 reached 16 billion 800 million yuan. (heap)

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