news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Securities Times reporter Chen Cheng

Changdian Technology (600584) spent 4.473 billion yuan to acquire SanDisk Semiconductor, ushering in new progress. On the evening of August 11, Changdian Technology announced that the acquisition was approved by the Shanghai Minhang District Planning and Natural Resources Bureau. At the same time, the company received the "Decision on Non-Prohibition of Anti-Monopoly Review of Concentration of Operators" issued by the State Administration for Market Regulation.

The announcement shows that according to the relevant provisions of the land use rights transfer contract signed by SanDisk Semiconductor and the transferor (i.e. the Shanghai Minhang District Planning and Natural Resources Bureau), "any changes in the investment ratio structure of the land user and the equity structure of the project company (i.e. the target company) shall be subject to the prior consent of the transferor." Recently, SanDisk Semiconductor received a letter of consent issued by the Shanghai Minhang District Planning and Natural Resources Bureau, agreeing to the proposed equity changes in the transaction.

At the same time, the company has received the "Decision on Non-Prohibition of Anti-Monopoly Review of Operator Concentration" issued by the State Administration for Market Regulation, which decides not to prohibit the transaction and all parties to the transaction can continue to move forward.

Changdian Technology is a world-leading integrated circuit manufacturing and technology service provider, providing a full range of one-stop chip manufacturing services, including integrated circuit system integration, design simulation, technology development, product certification, wafer testing, wafer-level mid-line packaging testing, system-level packaging testing, chip product testing, and direct shipping services to semiconductor customers around the world. The company has two major R&D centers and six integrated circuit production bases in China, South Korea and Singapore, and business organizations are distributed all over the world. It can carry out close technical cooperation with global customers and provide efficient industrial chain support.

SanDisk Semiconductor was founded in 2006 and is located in Minhang District, Shanghai. It is mainly engaged in the packaging and testing of advanced flash storage products, including iNAND flash memory modules. Securities Times e-company reporter learned that Western Digital, the parent company of SanDisk Semiconductor, is a leading global memory manufacturer. It has established a long-term cooperative relationship with Changdian Technology since 2003 and is one of its important customers.

In March this year, Changdian Technology announced that it would acquire 80% of the equity of SanDisk Semiconductor in cash, with the transaction price being approximately US$624 million (approximately RMB 4.473 billion).

Since the beginning of this year, my country's integrated circuit imports and exports have maintained a positive trend. On August 7, the General Administration of Customs released data showing that in July this year, my country's integrated circuit exports amounted to 98.56 billion yuan, a year-on-year increase of 26.77%, and the export value has increased year-on-year for 9 consecutive months. In the first seven months of this year, my country's integrated circuit exports amounted to 640.91 billion yuan, a year-on-year increase of 25.8%, second only to ships among the key exported commodities; the cumulative import value increased by 14.4% year-on-year, and the cumulative import and export data has maintained double-digit growth for 7 consecutive months.

Regarding the acquisition of SanDisk Semiconductor, industry experts said that this transaction will help Changdian Technology and Western Digital establish a closer strategic partnership and enhance customer stickiness.

According to statistics from the World Semiconductor Trade Statistics (WSTS), memory chips are the second largest semiconductor market segment, accounting for about 28%, and the memory chip market size is expected to reach US$130 billion in 2024. In the global memory market, NAND flash memory chips account for about 40%, with a compound growth rate of 8% from 2021 to 2027.

"After the completion of this transaction, the seller and its affiliates will continue to be the main or only customers of the target company for a period of time, and the target company's operating performance will be guaranteed to a certain extent. Changdian Technology will indirectly control the target company and consolidate its financial statements, which will help increase Changdian Technology's performance." The above-mentioned expert believes that after the completion of the transaction, Changdian Technology's market share in the storage and computing electronics fields will be expanded, the level of intelligent manufacturing will be improved, and a differentiated competitive advantage will be formed.

It is reported that the overall localization rate of semiconductor packaging and testing equipment is still relatively low. With the expansion of advanced packaging production lines, the demand for related equipment will also increase. Domestic packaging equipment manufacturers are actively deploying in the field of advanced packaging and are expected to gain more market share in the wave of domestic substitution.

In this context, as a leading company in the field of packaging and testing, the reporter learned that Changdian Technology has been actively making arrangements in the field of high-performance advanced packaging. The company's XDFOI Chiplet high-density multi-dimensional heterogeneous integration series process has entered the stable mass production stage as planned.