Hon Hai Technology Group (Foxconn) and YAGEO Group have announced participation in XSemi Corporation’s NT$3.1 billion (US$2 billion) capital increase. On the other hand, XSemi together announced to participate in the NT$2.8868 billion (US$1.87 billion) private placement in leading Taiwan MOSFET manufacturer Advanced Power Electronics Corp. (APEC). Consequently, XSemi will become the largest shareholder with 35 million shares, or 30.08 percent of APEC.
After this round of financing, Hon Hai will become the majority owner of XSemi with 51 percent holdings. Meanwhile, YAGEO and its related companies will have 49 percent. At the same time, Hon Hai’s Chairman Young Liu and YAGEO’s Chairman Pierre Chen are nominated to become XSemi’s Chairman and Vice Chairman, respectively.
Design Company for Analog, Power ICs
XSemi is a Hsinchu-based joint venture (JV) established in 3Q of 2021 by Hon Hai and YAGEO. It is an IC design company specializing in analog and power semiconductors primarily focusing on the automotive and industrial sectors. The goal of the JV is to serve the strategic system customers and distributors for both Hon Hai and YAGEO.
XSemi is leveraging off its internal design capabilities and strategic alliances with many semiconductor leaders in the industry. They range widely on product designs, capacity planning, and distribution channels to enhance its product portfolio and market position in analog and power semiconductors.
With the strategic collaboration with APEC, XSemi will be able to expedite its business development. This can strengthen its ability to provide customers with a steady, highly reliable, comprehensive product solutions and services.
Strategic Partnership with APEC
Since 2020, before the formation of the JV in 2021, the world has seen an unprecedented market dynamics in the semiconductor world. It was driven by the combination of short-term supply shocks and rising secular demand. New market opportunities like electric vehicle (EV), digital health, robotics, and work-from-home continue to emerge.
Leveraging off the strategic collaboration with APEC for its comprehensive MOSFET product line with over 1,000 SKUs, XSemi will be able to expedite its business development and strengthen its product portfolio and customer reach.
APEC’s products will also complement with XSemi’s power management IC, silicon carbide (SiC) chips and modules as total solutions. It aims to provide not only Hon Hai and YAGEO’s existing and future customers, but will also benefit APEC’s current customers. Moreover, APEC will benefit from Hon Hai’s EV footprints and YAGEO’s premium channels to enter the automotive supply chain.
Seize Opportunities in Analog and Power ICs
“On top of XSemi’s participation through its analog and power products on the auto collaborations, its power module has also shown great progress. With the private placement of APEC, XSemi can fill the gap in its low to high voltage silicon MOSFET product line. This will provide steady semiconductor supply for the two groups’ future strategic focus in industrial and automotive,” said Hon Hai Chairman Young Liu.
“Our alliance with APEC is to capture the upcoming opportunities in analog and power semiconductors. Once the products are ready, we can quickly deliver them to the customers through YAGEO’s extensive global channels. This approach fits YAGEO’s strategy perfectly which is to continue to provide our global customers with comprehensive electronic component solutions” said YAGEO Chairman Pierre Chen.
Building on top of Hon Hai and YAGEO’s long term strategy and objectives, XSemi will continue to expand its product portfolio. Also, it will strengthen its product competitiveness to meet the needs of the existing and future customers of the two groups. XSemi aims to be one of the key global analog and power semiconductor providers.