OKI Signs Definitive Agreement With ROHM To Transfer Shares Of Semiconductor Subsidiary
Oki Electric Industry Co., Ltd. announced that OKI and Rohm Co., Ltd. signed a definitive agreement whereby OKI will transfer 95% of the shares of its new semiconductor company, OKI Semiconductor Co., Ltd., to ROHM. The new company will be established through an incorporation-type company split, effective October 1, 2008.
"We are pleased to reach and sign the definitive agreement with ROHM," said Katsumasa Shinozuka, President and CEO at OKI. "Because the product overlap between OKI and ROHM is relatively low, we believe by transferring shares of the new company, the OKI-nurtured semiconductor business will continue to grow under ROHM and maximize strengths of both companies."
OKI states that it has been implementing company-wide initiatives to revamp its business structure to increase corporate value and gain a competitive edge as competition has become more global and fiercer. As part of the initiatives, OKI has been discussing how to expand its semiconductor business. On the other hand, ROHM states that it has been looking for opportunities to improve its corporate value and advance as an IDM (integrated device manufacturer) semiconductor company with a broad product portfolio having a competitive edge.
On May 28, 2008, OKI announced the spin-off of its semiconductor business through a company split which would establish a new OKI Semiconductor and signed a basic agreement with ROHM to transfer 95% of the issued shares of that company to ROHM. Since then, the two companies have been holding talks to reach a definitive agreement. On the July 24 board meetings held at OKI and ROHM, board members passed resolutions approving the definitive agreement, and the two companies then signed the definitive agreement to transfer shares of OKI Semiconductor.
OKI Semiconductor states that it will strengthen its business by leveraging OKI’s advantages in low power consumption, high-voltage processing, digital/analog mixed processing and small-size packaging technologies, as well as maximizing its manufacturing capabilities. Newer products, such as system LSIs and logic LSIs, which have been manufactured at outside foundries, will now be manufactured using ROHM’s advanced production process. In addition, the new company is expected to increase its sales capabilities by leveraging the sales networks, technologies and quality support networks of OKI and ROHM in Japan and overseas.