IMP Signs Chinese Joint Venture with MinghuaSeptember 11, 2002 by Jeff Shepard
IMP Inc. (San Jose, CA) announced that it has signed a joint venture agreement with Minghua Co. (Ningbo, China) to contribute equipment, technology and business, with Minghua providing facilities, clean rooms and infrastructure. The total investment of the joint venture company is $31.0 million, with IMP receiving a total of $140.0 million when certain specific time-driven goals are achieved.
"Among other things, the goals of this joint venture are to enhance economic cooperation and technical exchanges so that we could gain a competitive position in the world market," said IMP Chairman and CEO Subbarao Pinamaneni. "This set-up allows us to
establish a strong manufacturing base in China and with relatively low production costs, our gross margins will naturally improve. Additionally, this allows our joint venture to penetrate the growing electronics market in China and the region."
Terms of the joint venture were not specified, but they encompass the design, development, production and sale of ICs, electronic modules and software. The joint venture is subject to approval by IMP’s board