On June 10, the M & A and restructuring Review Committee of CSRC held the 25th working meeting in 2020, and Wingtech Technology's acquisition of the remaining equity of Nexperia was unconditionally approved.

According to the person in charge from Wingtech, this time, Wingtech Technology intends to issue shares and pay cash to acquire the relevant equity shares of four shareholders of Hefei Yuxin at the consideration of 6.334 billion yuan. After the completion of the transaction, Wingtech Technology will hold 98.2% of the total equity of Nexperia.

Wingtech Technology's M&A of Nexperia is the largest semiconductor acquisition in China's history, and the first acquisition of a global leading semiconductor company by a Chinese company.

Accepted on June 1, acceptance notice received on June 3, and passed unconditionally on June 10. The acquisition of Wingtech Technology was highly valued and quickly approved by the regulatory authorities.

It was reported by the company that in this transaction, Wingtech Technology plans to raise 5.8 billion yuan, of which 1.6 billion yuan will be used in the advanced assembly and test platform and process upgrading project of Nexperia China, 1.05 billion yuan will be used in the assembly and test of semiconductor communication module and terminal R & D and industrialization project, 2.9 billion yuan will be used to supplement the working capital of listed company and repay the debts, and the remaining funds will be used to pay the cash consideration and related taxes of this transaction, plus the intermediary fees.

As a high-capacity expert in the field of semiconductor basic components production, the products of Nexperia are widely used in all kinds of electronic design in the world, especially the leading technology of gallium nitride (GAN). In 2019, the operating profit and total profit of Nexperia are increasing year on year, it continues to maintain the leading position in the world.

Wingtech Technology is a leading communication and semiconductor enterprise in the world, maintaining in-depth cooperation with major mobile phone, PC, IoT, automobile and other brands in the world. Wingtech Communication Co., Ltd. under Wingtech Technology is the largest mobile phone ODM enterprise in the world, while Nexperia is an experienced European semiconductor company with a history of 60 years, formerly known as Philips semiconductor standard products business division in the Netherlands. It maintains the top three leading position in the industry in diode, transistor, ESD protection device, logic IC, MOSFET and other subdivisions. Its products are widely used in mobile phone, PC, IoT, automobile and other fields.

Li Gang, an industry analyst from Sano, an authoritative research institution, believes that as the only global leading power device IDM manufacturer controlled by Chinese capital, the development of domestic substitution of Nexperia is of great significance and has huge potential. In 2019, the operating revenue of Nexperia is 10.3 billion yuan, ranking first among the domestic power semiconductor manufacturers, the domestic market share accounts for about 10% - 15%. It is estimated that the domestic power device market scale is about 6 billion USD. Under the wave of domestic substitution, the future development of Nexperia has bright prospects.

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