US EUROPE AFRICA ASIA 中文
    Business / Technology

    Consortium buys US chip producer OmniVision

    By EMMA GONZALEZ (China Daily) Updated: 2015-05-05 09:40

    Purchase seen as part of larger shift in industry's supply chain, manufacturing

    A Chinese consortium led by private equity firm Hua Capital Management has announced the acquisition of the United States-based smartphone and tablet chipmaker OmniVision Technologies Inc for $1.9 billion.

    The Chinese investor group, which also includes investment management firm CITIC Capital Holdings Ltd and Hong Kong-based GoldStone Investment Co Ltd, will pay $29.75 per share for the company.

    Reuters reported last August that Hua Capital Management group originally made an unsolicited bid at the time for Nasdaq-listed OmniVision of $29 a share, which was worth about $1.7 billion.

    "We are pleased to have reached this agreement, which we believe realizes significant value for our stockholders and offers new opportunities for our employees to develop more innovative solutions for customers," said Shaw Hong, chairman and CEO of OmniVision, in a press release.

    OmniVision, whose customers include Apple Inc, expects the deal to close before the end of the fourth fiscal quarter of 2016. The transaction is still subject to regulatory approval in the US and China.

    Shaw will maintain his position in the company after the buyout.

    The Chinese market has been crucial for the Silicon Valley-based company as OmniVision generates most of its revenue from China.

    The company has a design center and testing facility in Shanghai. Last year, its largest customer was contract manufacturer Hon Hai Precision Industry Co Ltd, better known as Foxconn.

    "We believe our unique industry knowledge and operational expertise can help accelerate OmniVision's presence both in China and globally," said Yue Liu, managing director of Hua Capital Management.

    Neil Shah, research director at market research firm Counterpoint Technology Market Research, said: "The entire component supply chain and manufacturing industry is shifting from West to East. So it definitely makes sense for Chinese investors to acquire OmniVision to their portfolio and then maybe sell out for a higher payout to other interested Chinese firms in the future."

    In the last two years, State-owned investment firms have purchased several US-listed chipmakers including Montage Technology Group, Spreadtrum Communications Inc and RDA Microelectronics Inc.

    Neil Flynn, portfolio manager at Alcuin Asset Management, said: "The key reason for these acquisitions is to gain access to the intellectual property. This allows improvements to technology such as smartphone and cellular networks."

    In October, China announced it had established an investment fund to boost the development of the integrated circuit industry. The fund's main objective was to invest in chip production and boost output in the sector as well as promote mergers and acquisitions.

    Flynn said: "China's semiconductor industry has grown at an annual rate of 26.5 percent over the past 13 years, and it is expected to grow at over 20 percent annually over the next seven years.

    "Domestic investment and seed funding can only maintain growth to a certain industry size, but larger investment in leading international technology is required to sustain growth as the industry matures and expands."

    China's plans to upgrade the national semiconductor industry and its search for acquisitions overseas are viewed with suspicion in the US.

    Following the announcement of the OmniVision acquisition, US media speculated over the possibility of national authorities not giving the green light to the deal over rising concerns of the transfer of intellectual property and manufacturing knowledge.

    Shah said : "I think there is not enough evidence that the series of acquisitions in the component industry is related to the Chinese government's political ambitions, but rather is a classic example of consolidation in the industry."

    Hot Topics

    Editor's Picks
    ...
    最近中文字幕视频在线资源| 亚洲日韩激情无码一区| 无码中文人妻在线一区二区三区| 东京热人妻无码一区二区av| 中文字幕无码一区二区三区本日| 久久无码AV中文出轨人妻| 中文字幕乱码久久午夜| 少妇无码一区二区二三区| 一本一道色欲综合网中文字幕| 国产麻豆天美果冻无码视频| 亚洲国产精品无码久久一线| 中文字幕视频免费| 中文字幕一区二区人妻| 国产精品无码免费专区午夜| 一本一道AV无码中文字幕| 中文字幕一二区| 色婷婷久久综合中文久久蜜桃av| 精品无码久久久久国产| 亚洲熟妇无码AV在线播放| 一区 二区 三区 中文字幕 | 最新中文字幕在线观看| 无码任你躁久久久久久老妇 | 亚洲国产精品无码久久久蜜芽| 日韩中文字幕一区| 狠狠躁夜夜躁无码中文字幕 | 亚洲AV永久无码精品成人| 国产成人无码AV麻豆| 最近中文字幕大全免费视频| 精品久久久无码人妻中文字幕豆芽| 国产Av激情久久无码天堂| 精品亚洲A∨无码一区二区三区 | 久久精品一区二区三区中文字幕| 欧美日韩中文国产一区发布 | 无码人妻一区二区三区精品视频| 久久久无码精品亚洲日韩按摩 | 一区 二区 三区 中文字幕| 久久无码AV中文出轨人妻| 中文字幕精品无码久久久久久3D日动漫| 欧美 亚洲 有码中文字幕| 中文一国产一无码一日韩| 久久中文娱乐网|