Delta Electronics’ Japan and Korean subsidiaries have moved to acquire the power inductor and powder materials business and assets of Alps Alpine Co., Ltd. Particularly, including production and R&D equipment, patents, and intellectual property.

Accordingly, the deal may approximately reach US$71 million. Also included in the deal is its subsidiary, Alps Electric Korea Co., Ltd. 

Enhance Capabilities in Passive Components

Alps Alpine’s unique powder material patent technology helps create power inductors with low power loss. Thus, improving the energy efficiency of devices and equipment. Upon completion, Delta expects to integrate Alps Alpine’s power inductor business in Japan and South Korea, combining their R&D capabilities, production facilities, and customer resources. Therefore, enhancing the capabilities of its passive components for data centers, AI high-performance computing, edge computing, electric vehicles, smartphones, and next-generation ICT products.

Ping Cheng, Delta’s Chairman and Chief Executive Officer, said, “Delta’s world-leading power inductor technology is also gaining substantial ground in the AI server and electric vehicle realms.” 

Alps Alpine offers one-of-a-kind intellectual property in the field of power inductors. Moreover, the company is also an industry-leading provider of innovative technologies. With this acquisition, Delta aims to create synergies to ultimately enhance its patent and supply chain capabilities. Thus, benefitting business development.

In addition, Cheng said, “By combining our own growing R&D capabilities in Japan with Alps Alpine’s, we will accelerate the development of innovative products and technologies.”

Reputable Position in Technology

Hideo Izumi, Alps Alpine’s President & CEO, said, “(Alps Alpine is) a significant enterprise in the fields of sensors and communications, and in automotive systems. (The company) also leads the industry with its original unique magnetic metal material, featured as ‘an amorphous material with a supercooled liquid region. This is a state-of-the-art technology that contributes to low Iron Loss and high Saturation Flux density for the electronics components sector.”

In addition, Izumi said, “In the field of power inductors, Delta holds a reputable position in terms of technology, production capacity, and quality. As Alps Alpine’s power inductor business grows, it needs resources to scale up quickly. (Thus), we believe that after integrating this business, Delta will accelerate the growth of its passive components segment.”

Alps Alpine is in the listing of the Tokyo Stock Exchange (stock code: 6770) with businesses divided into three major categories. Namely, Component, Sensor & Communication, and Modules & System.

Moreover, it provides products and services for multiple markets, including automotive, home appliances, mobile communications, gaming, and industrial equipment. The scope of this transaction involves the assets and equipment related to the power inductor under the “Sensor & Communication” business. Moreover, with product applications including AI high-performance computing, smartphones, wearable products, solid-state drives (SSD), double data rate (DDR) devices, and more.

30 August 2024