Another way to lay out the integrated circuit landing, Sanan Optoelectronics acquired GCS "borrowing" joint venture

Sanan Optoelectronics acquired GCS Holdings, Inc. (hereinafter referred to as "GCS") in August this year failed to obtain approval from the US Foreign Investment Committee. According to the previous plan, Sanan Optoelectronics intends to acquire 100% equity of GCS with its own monetary fund of US$226 million (approximately RMB 1.502 billion).

On November 10th, Sanan Optoelectronics announced that the company's wholly-owned subsidiary, Xiamen Sanan Integrated Circuit Co., Ltd. (hereinafter referred to as “Sanan Integration Company”) and GCS decided to establish a joint venture company and signed the “Joint Venture Contract”.

According to the announcement, Sanan Integration Company and GCS decided to establish a joint venture company with the aim of complementing each other's advantages and combining their respective production capacities and advantages to expand the scale of operation, increase profitability and strengthen the competitiveness of the company. The name of the joint venture company is tentatively set to Xiamen Sanan Huanyu Integrated Circuit Co., Ltd. has a registered capital of USD 4 million and the term is 50 years from the date of establishment.

GCS was founded in 1997 in Torun, California, USA, and is listed on the counter at the Taiwan Securities Counter Trading Center (code 4991). It is mainly engaged in the manufacture of gallium arsenide, indium phosphide, gallium nitride high-order RF and optoelectronic components. The research, development, manufacturing and sales of OEM, related intellectual property rights and advanced optoelectronic products provide a full range of services from product concept, technology research and development, product trial production to mass production.

Therefore, the business scope of the joint venture company is mainly to develop, produce and sell its own products for mobile phone RF, filters, optical communication chips, power managers, optical fibers and new technologies, as well as to sell other mobile phone RF, filters and optical communication chips. , power manager, fiber optics.

Appropriate members of Sanan Integration and GCS and/or GCS affiliates shall sign the Technology Licensing Agreement with the joint venture company on the condition agreed by both parties, and shall hold Sanan and GCS and its affiliates according to its regulations. The technology is licensed to the joint venture company in connection with the production and operation of the joint venture company.

Appropriate members of GCS and/or GCS affiliates will sign the corresponding trademark and brand licensing agreement with the joint venture company on the terms agreed by both parties, the joint venture's use of the trademarks of GCS and/or GCS affiliates, and joint ventures. The company may print the right to mark its relationship with GCS on its products, subject to the terms of the license agreement.

After the establishment of the joint venture company, the two parties will cooperate fully and make full use of the resources and advantages of both parties to jointly promote the development of the industries involved and promote the common development of both parties.

Sanan Optoelectronics said that the establishment of a joint venture with GCS can quickly enhance the company's technical level of RF communication and optical communication components and the construction of a patent platform. The broad customer network complements the company's existing business technology and capacity.

At the same time, it provides a strong guarantee for the company's integrated circuit to develop its domestic and overseas markets, which is conducive to accelerating the development of the company's integrated circuit business, expanding its business scope and scale, improving the company's profitability and enhancing its core competitiveness.