Chinese Component Maker Yangjie Electronic Splashes USD11 Million on 60% Stake in Its Chip Supplier(Yicai Global) Oct. 30 -- Jiangsu-based electronic components maker Yangzhou Yangjie Electronic Technology Co. [SHE:300373] plans to buy a 60-percent stake in an upstream semiconductor company for CNY72 million (USD10.84 million) to cut its per-unit production costs.
The firm penned a cash deal with shareholders at Chengdu Qingyang Electronic Material Co, it said in a statement on Oct. 29.
The target company is a high-tech enterprise engaged in the manufacture of semiconductors, silicon wafers and other electric materials. Many of its products are at an industry-leading level and are purchased by the world's largest rolling stock manufacturer CRRC Corp. Ltd. [SHA:601766;HKG:1766], among other well-known firms.
Upon completion of the investment, Yangjie Electronic will be able to better ensure product quality while cutting costs to improve profitability, it added.
