GEM Services Announces Joint Venture With Mitsubishi Electric to Build Power Semiconductor Modules in China

September 27, 2011 by Jeff Shepard

GEM Services announced that it is establishing a joint-venture company with Mitsubishi Electric Corp. to manufacture energy-saving power semiconductor modules in China.

The new company, Mitsubishi Electric GEM Power Device (Hefei) Co., Ltd., will begin operations in January 2012. Located in Hefei Economic & Technological Development Area, Anhui Province, China, the company plans to expand its workforce to about 800 by December 2015.

The production build plan to begin this manufacturing joint venture will be initially two to three different types of power module packages with targeted applications in the consumer and industrial market segments.

"Our joint venture with Mitsubishi Electric does significantly enhance our manufacturing capabilities in the assembly and testing of ’system-in-a-package’ power modules," said Richard J. Kulle, president and CEO, GEM Services. "With environmental and energy consciousness growing globally, we see tremendous opportunities to expand our business in the international market and the fast growing China domestic market. We look forward to our business cooperation with Mitsubishi Electric, a leader in the worldwide power device market, and continuing our strategic plan to be a front runner in the outsourcing manufacturing services industry in high-value-added power management solutions with our global customers."

GEM Services’ conventional power packaging outsourcing business remains independent of the joint venture with Mitsubishi Electric. GEM Services will continue to provide its power semiconductor customers with the best-in-class quality and manufacturing services.

Ownership of Mitsubishi Electric GEM Power Device (Hefei) Co., Ltd. will be shared by Mitsubishi Electric Corporation (70 percent), GEM Electronics (Shanghai) Co., Ltd. (20 percent), and Mitsubishi Electric (China) Co., Ltd. (10 percent).