Chinese storage specialist Longsys, a major client of US chip maker Micron, completes US$132 million takeover of Suzhou plant from Taiwan’s Powertech

Longsys has acquired a 70 per cent equity stake in Powertech Technology (Suzhou), which provides chip packaging and testing services

The deal, which Longsys announced in June, involves an initial payment of US$65.8 million, with the balance to be paid on a later date

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The latest corporate acquisition by Shenzhen Longsys Electronics reflects the continued initiatives by mainland Chinese tech firms to further develop the country’s position in the global semiconductor manufacturing supply chain. Photo: Handout

Published: 7:02pm, 12 Oct 2023

Storage systems specialist Shenzhen Longsys Electronics, one of US memory chip maker Micron Technology’s largest clients in China, has completed its US$132 million takeover of a mainland plant from Taiwan’s Powertech Technology, one of the world’s largest semiconductor assembly, packaging and testing companies.

Longsys, which makes digital storage products that include memory modules and solid-state drives, said in a filing to the Shenzhen Stock Exchange on Wednesday that it has finalised the acquisition of a 70 per cent equity stake in Powertech Technology (Suzhou), which provides chip packaging, testing and surface-mount technology services in the most populous city of eastern Jiangsu province.

That acquisition, which Longsys announced in June, involved an initial payment of US$65.8 million, with the balance to be paid on a later date, according to the company.

Longsys’ shares in Shenzhen closed up 1.07 per cent to 96.70 yuan (US$13.25) on Thursday.