LITE-ON Technology Corp. has made a strategic investment with COSEL Co., Ltd., a leading Japanese power supply manufacturer. Accordingly, the transaction represents 19.99% stake at COSEL amounting roughly to NT$2.53 billion (US$78 million, approx.).

The deal will secure LITEON the right to nominate one board member and suggest one independent board director in COSEL. Moreover, this strategic investment is a sign of significant collaboration between the two companies.

Development, Manufacturing Collaboration

LITEON and COSEL expect the partnership to foster synergies across several operational facets. These facets include product development, manufacturing, geographic footprint, and market expansion.

COSEL has robust capabilities in industrial equipment, semiconductors, and healthcare industries. Thus, LITEON’s investment will enable them to gain strengths in electronics and provide more comprehensive solutions to customers.

 Anson Chiu, President of LITEON, commented, ” In recent years, LITEON has been persistently transforming, diversifying its approach with a market-oriented focus, and continually refining its product portfolio. Hence, partnering with COSEL allows us to capitalize on mutual strengths and marks a milestone for LITEON…We aim to accelerate our presence in the global high-growth power solution sectors.”

Meanwhile, Morio Saito, President of COSEL, said, “…amid changes in the global business environment and diversification of customer needs, the business alliance will integrate the technological capabilities of the two company groups. (We aim to) build a global structure capable of providing more value-added products and services in a timely manner. This will further lead to enhanced corporate value and sustainable growth of both companies.”

Synergies for Future Growth

LITE-ON is a company group based in Taiwan with more than 80 consolidated subsidiaries. Moreover, it has maintained global operations for around five decades in developing, manufacturing, and selling electronic components. Particularly, for computers, consumer electronics, automotive electronics, LED lighting, and among others.

Currently, the company is active in developing new technologies and innovation in growth areas such as cloud computing, AI, IoT, EV, and renewable energy.

Meanwhile, COSEL is a premier manufacturer of high-quality, ultra-compact switch-mode power supplies, DC-DC modules, and power filters in Japan.

Essentially, COSEL’s products are predominantly visible in the industrial equipment, semiconductor, healthcare, and renewable energy sectors. Specifically, the primary markets are in Japan, Europe, North America, and other parts of Asia.

7 May 2024