Unimicron acquires Phoenix to aim for world's no. 1 PCB maker
Pursuing sustainable development and No. 1 position in the world, Taiwan-based Unimicron Technology Corp., a supplier of PCBs (printed circuit boards), has recently announced an acquisition of its Taiwanese counterpart Phoenix Precision Technology Corp. for some NT$4.4 billion based on 1 share of the former in exchange for 0.6 share of the latter, according to managements of the two companies.
Unimicron is scheduled to complete the acquisition on December 1, with its chairman T.J. Tseng to remain in office. After the merger, the firm's capitalization and monthly output of flip-chip substrates will surge to NT$15.28 billion and 30 million units, respectively.
Unimicron mainly specializes in production of PCBs and HDI (high-density interconnect) substrates, with such products commanding 78% of the total shipments posted last year and IC (integrated circuit) boards 22%, while Phoenix is engaged in PBGA (plastic ball-grid array) and FC-BGA (flip chip ball-grid array) substrates. In other words, the acquisition will help Unimicron not only achieve comprehensive product lines, but also upgrade technologies in the future.
Also, Unimincro is expected to enjoy more new clients through the acquisition. For example, Tseng indicated, the merger will enable Unimicron to tap Intel's supply chain, mainly because Phoenix has already done the job.
Besides, with the acquisition, Unimincron, combining its affiliate Subtron Corp. as the world's second-largest group of PCB makers now, is likely to challenge Ibiden of Japan as the world's No. 1, because Unimicron Group and Phoenix posted aggregate revenues of NT$58.7 billion (about US$1.68 billion at US$1: NT$35) for 2008, very close to Ibiden's.
