NXP and JAC Capital Complete Bipolar Power JV
NXP Semiconductors N.V. and Beijing JianGuang Asset Management Co. Ltd. (JAC Capital) today announced that they have completed the transaction under which it established Bipolar Power joint venture (JV) WeEn Semiconductors in China following the clearance of regulators. The intention to establish this JV was originally announced on February 19, 2015.
WeEn combines NXPâ€™s advanced technology from its Bipolar Power business line with JAC Capitalâ€™s strong connections in the Chinese manufacturing network and distribution channels to lower manufacturing costs and boost profit margins of high end electronic products in China. JAC Capital has a 51% stake in WeEn while NXP owns the remainder.
WeEn will seek to capture the opportunities arising from Chinaâ€™s growing demand for electronic products in the consumer, automotive, smart manufacturing and medical equipment sectors. Current Chinese government policies provide great incentives to the high tech sector, including semiconductors, which will accelerate the growth of the industry in the next few years.
â€œThe completion of this transaction marks another step in NXPâ€™s efforts in China, an electronics market which offers outstanding growth opportunities,â€ said Frans Scheper, executive vice president and general manager of the Standard Products business, NXP Semiconductors. â€œWith JAC Capital as partner we will be able to gain further market reach as a genuine Chinese business, allowing us to provide the best possible customer support to our global customer base and offer the greatest competitive advantages.â€
William Sun, the general manager of JAC Capital said: â€œThe completion of this deal is a significant milestone for Beijing Jianguangâ€™s investment in the semiconductor industry. It is a great achievement from the cooperation between JAC Capital and NXP. With NXPâ€™s leadership in the semiconductor industry and our strong local network, jointly we can provide the financial and industrial support to WeEn allowing it to rapidly develop its operations. This will not only be beneficial for both parties but will also greatly promote Chinaâ€™s local industry and economy.â€
In addition to the today completed transaction, NXP and JAC are in the final stages of the regulatory approval process in respect of the acquisition by JAC of NXPâ€™s RF Power business, which is targeted to close on December 7.