Greatek to Acquire ON Semiconductor's Philippine Assembly and Test Facility for US$45 Million

(CNA) - Greatek Electronics announced today that its board of directors has approved a plan to use its own funds to acquire all issued shares of ON Semiconductor SSMP Philippines Corporation, held by ON Semiconductor Japan Holdings Ltd., for a total investment not exceeding US$45 million (approximately NT$1.437 billion).

Greatek's announcement stated that this merger and acquisition aligns with its medium-to-long-term growth strategy and global supply chain restructuring trends. It will help meet the demand for supply chain diversification strategies, such as Taiwan+1, promoted by major clients in recent years. By establishing a more comprehensive assembly and test service capability in Southeast Asia, the company expects to reduce operational concentration risks in a single region, enhance order flexibility, improve production allocation efficiency, and increase the immediacy of customer service.

Greatek stated in a press release that the target of this transaction is a semiconductor assembly and test service company located in the Philippines, possessing an existing operational foundation, mass production capabilities, local management experience, and a professional technical team. By acquiring an existing operational platform, Greatek will be able to build a supplementary and strategically flexible overseas production base, in addition to its core production and technology layout in Taiwan, thereby strengthening its cross-regional operational dispatch capabilities.

Greatek emphasized that this merger and acquisition does not involve transferring Taiwan's production capacity overseas, nor does it replace existing operational sites in Taiwan. While maintaining the foundation of its core operations and technical capabilities in Taiwan, the company is establishing supplementary mass production sites outside of Taiwan based on risk diversification, supply chain resilience, and global customer service needs.

Greatek stated that it will continue to deepen its core operations in Taiwan and enhance its global service capabilities through overseas site expansion, pursuing long-term stable growth and maximizing shareholder value.

Greatek explained that the total investment amount for this project, including the cash on the target company's books at the closing date, will not exceed US$45 million. The actual transaction terms, price adjustment mechanisms, closing arrangements, closing conditions, and other related matters will be handled according to the final Share Purchase Agreement signed by both parties. This case is subject to approval by the Fair Trade Commission before it becomes effective and subsequent share transfer procedures can proceed. After the completion of the share transfer, the target company's name is expected to be changed to Greatek Electronics Philippines Corporation. (Editor: Chang Chun-mao) 1150703

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