Friday 29 Mar 2024
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KUALA LUMPUR (Oct 18): Inari Amertron Bhd has entered into a memorandum of understanding (MoU) with China Fortune-Tech Capital Co Ltd (CFTC) with the intention to set up a joint venture (JV) firm in China to carry out outsourced semiconductor assembly and test (OSAT) manufacturing and related businesses for the Chinese market.

CFTC is a private equity fund management company founded in 2014 in Shanghai. Its investments focus on the integrated circuit industry, including semiconductor materials and electronic materials, integrated circuit design, equipment, IP, services and tools.

In a filing with Bursa Malaysia, the semiconductor maker said its responsibilities will be providing expertise and operational leadership to expand the business of Amertron Technology (Kunshan) Co Ltd (ATK) under the JV and also at new plant sites in China.

In addition, Inari also will provide relevant technical assistance, knowledge and know-how relating to OSAT manufacturing operations to the JV where available and needed for the JV's expansion in China.

Meanwhile, CFTC will provide expertise, relationships and guidance to the JV on the business opportunities, including sales, marketing strategies, business development and risks within the regulatory frameworks of China.

CFTC will also provide local leadership on the physical set-up of plants, safety/health/environmental compliance and secure human resources for operations of these plants.

At the same time, the two companies will combine corporate, technical and operational expertise and resources to achieve the best performance outcome for the JV, besides working together jointly on business strategies and plans for the China market.

"The MoU represents an opportunity and commitment to fostering a business relationship with CFTC with a view to collaborate and expand the OSAT business of Inari and ATK under CJV in China and thus enable Inari to expand its operations in China and to increase its revenue and earnings stream," Inari said.

Inari added that it will contribute 100% of the equity shares of ATK and new cash investment of 463 million yuan (RM300 million) as its capital contribution to the JV.

CFTC, meanwhile, will contribute a combined new cash investment of 770 million yuan (RM499 million) as 100% of its equity shares of Yiwu Semiconductor International Corp.

Upon completion of the capital contribution, Inari will own 55% equity of JV and CFTC the remaining 45%.

Shares of Inari closed up two sen or 0.53% to RM3.80, valuing the group at RM14 billion, having witnessed almost 11 million shares transacted for the day.

Edited ByS Kanagaraju
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