Taiwan-based LCD driver IC packaging and testing service provider Chipbond Technology’s latest strategic investment deployments in China are mainly designed to consolidate its market share there amid the increasingly fierce competition and changing market climate, company chairman Wu Fei-jian has said.
Wu told a recent press conference that Chipbond has decided to unload a 53.69% stake in its subsidiary Chipmore Technology, a subsidiary in Suzhou, Jiangsu Province of China, to three China strategic investors. Under the deal, Hefei City Government Fund will become the largest shareholder of Chipmore with a 48% stake, followed by Chipbond with 32%, with the remainder to be shared by Beijing Kinetic Energy Investment Fund and ESWIN as well as other minor investors.
Wu said the China investors do not aim to own an IC packaging and testing plant, but to access related technologies and secure investment gains. And for Chipbond, introducing funds from China investors is mainly to safeguard its high share of the China market from being cannibalized by newly emerging players in the China driver IC industry, Wu revealed, adding that Chipbond has reached agreements on the Chipmore deal with the three China strategic investors following three years of negotiations.