ChipMOS Taiwan to Acquire 19% of JMC Electric Corporation.
ChipMOS TECHNOLOGIES , an industry leading provider of outsourced semiconductor assembly and testing services, announced today that its majority-owned subsidiary, ChipMOS TECHNOLOGIES INC., has signed a purchase agreement to acquire 19% of JMC Electric Corporation, Ltd. (“JMC”), which is 100% owned by Chang Wah Electromaterial Inc. (“CWE”). The non-material, all cash transaction is expected to close by the end of August, 2014.
JMC is a leading provider of flexible organic substrate for LCD driver semiconductors, known as chip-on-film (“COF”) tape, with manufacturing technology that originated from Sumitomo Metal Mining Co., Ltd., Japan (“Sumitomo”). JMC currently has capacity of 36 million pieces per month for COF tape, with plans to expand capacity to 50 million pieces per month in 2015. Based in the Nan-Tzu Export Processing Zone, Kaohsiung, Taiwan, JMC’s operation is approximately 45 kilometers from ChipMOS’ Tainan fab in Southern Taiwan.
S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, “We are pleased to partner with CWE on this strategic opportunity. Our LCD driver business has undergone rapid growth and remains a key driver of our Company’s improved profitability and success. In the past, we have not provided COF tape for our LCDD assembly services, as customers typically consign COF tape to us. This strategic investment will further strengthen our position in providing services to our customers in LCD driver segment given the market growth expectations for ultra-high definition or UHD TV demand. If our customers face supply constraints, we will be able to help alleviate the material shortage. This transaction is in-line with our business strategy, profitability targets and ongoing efforts to expand upon our differentiated end market exposure and customer alignment within our target markets.”