On May 26, it was reported that Foxconn was considering bidding for the Singapore-based semiconductor packaging and testing company United Test and Assembly Centre (UTAC), with a potential transaction valuation of up to US$3 billion. According to industry insiders, UTAC's parent company Beijing Zhilu Capital has hired investment bank Jefferies to lead the sale and is expected to receive the first round of bids by the end of this month. At present, no party has commented on the matter.
It is worth noting that UTAC's business layout in mainland China makes it an ideal target for non-US strategic investors. As the world's largest contract manufacturer of electronic products and a major supplier to Apple, Foxconn has increased its investment in the semiconductor industry in recent years. Founded in 1997, UTAC is a professional packaging and testing company with business in multiple fields including consumer electronics, computing equipment, security and medical applications. The company has production bases in Singapore, Thailand, China and Indonesia, and serves customers including fabless design companies, integrated device manufacturers (IDMs) and wafer foundries.
Although UTAC has not yet disclosed specific financial data, it is reported that its annual EBITDA is approximately US$300 million. Against the backdrop of the continued reshaping of the global semiconductor industry, if this transaction is realized, it will not only enhance Foxconn's vertical integration capabilities in the chip supply chain, but will also have a profound impact on the global semiconductor supply chain landscape. This is particularly important given the increasingly fierce technological competition between China and the United States, and the attention paid to industry mergers and acquisitions outside the United States.
Post time: Jun-02-2025