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LCD driver IC packaging and testing service provider Chipbond Technology will sell a 53.69% stake in Chipmore Technology, its subsidiary based in Suzhou, to a group of investors consisting of an investment fund owned by the Hefei City government, Beijing Kinetic Energy Investment Fund and ESWIN, according to the company.
The sale is part of restructuring of the ownership of Chipmore Technology, Chipbond chairman Wu Fei-jain said. The restructuring will be in three steps, distribution of cumulative earnings at first, sale of Chipbond’s stake then and Chipmore’s expanding paid-in capital by one-third via issuing new shares, Wu noted. Chibond will not subscribe for any new shares, Wu indicated.
Chipbond is expected to receive disposal income of US$167 million, US$70 million from distribution of Chipmore’s cumulative earnings and US$96 million from Chipmore’s stake sales, Wu noted. After the sale, Chipbond ‘s stake in Chipmore Technology will decrease from 85.54% to 31.85%. The deal is expected to be completed in the second quarter of 2018.
The restructure is to make China-based investors hold a majority stake in Chipmore to minimize negative impact arising from the China government’s changes in policies concerning foreign enterprises, Wu explained.
In addition, Chipbond on December 14 announced the establishment of a joint-venture carrier tape maker in Hefei City, with Chipbond to invest CNY240 million (US$36.4 million) for a 30% stake. The three China-based new shareholders of Chipmore will be the main shareholders of the joint-venture.
Carrier tape is used in COF (chip on film) packaging of driver ICs used in smartphone panels. Viewing that packaging of smartphone-use driver ICs is shifting from COG (chip on glass) to COF (chip on film), the establishment of the joint venture is to meet increasing demand for COF packaging in 2018.
Chipbond has developed carrier tape with super fine pitches specifically for use in COF packaging of smartphone-use driver ICs and has begun small-volume production.
Chipbond chairman Wu Fei-jain
Photo: Julian Ho, Digitimes, December 2017
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