German semiconductor giant Infineon Technologies will acquire Taiwanese chip designer ADMtek in an all-cash deal valued at Euro80 million (HK$783.1 million).
It is the first Asian acquisition for the world's sixth-largest semiconductor company and will plug a hole in the company's fixed-line communications business.
The move will also boost Infineon's presence in the region. Last week, chief executive Ulrich Schumacher said the firm was looking at shifting 30 per cent of its global investment, or US$1.2 billion, to China in the next two to three years.
Infineon said yesterday it would buy ADMtek outright for at least Euro60 million.
The deal could increase by Euro20 million if certain performance targets were met.
No equity swap is involved, and the deal is subject to regulatory and shareholder approval.