MagnaChip to Acquire IGBT Manufacturer Dawin Electronics

January 26, 2012 by Jeff Shepard

MagnaChip Semiconductor Corp. announced that its Korean subsidiary has entered into a definitive agreement to acquire Dawin Electronics Co. Ltd., a privately held semiconductor company that designs and manufactures Insulated Gate Bipolar Transistor (IGBT), Fast Recovery Diode (FRD) and MOSFET modules. Dawin Electronics is headquartered in Incheon, South Korea, and has sales offices in China and Europe. Terms of the deal were not disclosed.

"The acquisition of Dawin Electronics is a strategic fit for MagnaChip and allows us to continue to diversify and expand our fast-growing Power Solutions business into the commercial and industrial segments," said Sang Park, MagnaChip’s Chairman and CEO. "Dawin’s high-power modules will enable MagnaChip to compete quickly and effectively in the high-growth IGBT market with a broader portfolio of power solutions for our customers. This acquisition also demonstrates our continued focus on capital allocation and commitment to return shareholder value to our investors."

According to market research firm IHS iSuppli, the total IGBT market in 2011 was estimated to be $4.1 billion and is expected to grow at a compounded annual growth rate of 10 percent from 2011 to 2015. The IGBT is used in a broad range of medium- to high-power commercial and industrial applications and in many consumer appliances such as variable speed refrigerators, air-conditioners and stereo systems. Availability of affordable, reliable IGBTs is also an important enabler for electric vehicles and hybrid cars.

The acquisition of Dawin and its IGBT and FRD module technology is synergistic with MagnaChip’s goal of expanding into high-growth, high-margin markets and with its long history as a designer and manufacturer of analog and mixed-signal semiconductor products. The acquisition is expected to be completed before the end of March 2012.

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