OKI Signs Definitive Agreement with ROHM to Transfer Shares of Its Semiconductor Subsidiary
TOKYO--(Business Wire)--
Oki Electric Industry Co., Ltd. (TOKYO:6703) announced that OKI
and Rohm Co., Ltd. (TOKYO:6963) signed a definitive agreement on July
24 whereby OKI will transfer 95% of the shares of its new
semiconductor company, OKI Semiconductor Co., Ltd., to ROHM. The new
company will be established through an incorporation-type company
split, effective October 1, 2008.
"We are pleased to reach and sign the definitive agreement with
ROHM," said Katsumasa Shinozuka, President and CEO at OKI. "Because
the product overlap between OKI and ROHM is relatively low, we believe
by transferring shares of the new company, the OKI-nurtured
semiconductor business will continue to grow under ROHM and maximize
strengths of both companies."
OKI has been implementing company-wide initiatives to revamp its
business structure to increase corporate value and gain a competitive
edge as competition has become more global and fiercer. As part of the
initiatives, OKI has been discussing how to expand its semiconductor
business. On the other hand, ROHM has been looking for opportunities
to improve its corporate value and advance as an IDM (integrated
device manufacturer) semiconductor company with a broad product
portfolio having a competitive edge.
On May 28, 2008, OKI announced the spin-off of its semiconductor
business through a company split which would establish a new OKI
Semiconductor and signed a basic agreement with ROHM to transfer 95%
of the issued shares of that company to ROHM. Since then, the two
companies have been holding talks to reach a definitive agreement. On
the July 24 board meetings held at OKI and ROHM, board members passed
resolutions approving the definitive agreement, and the two companies
then signed the definitive agreement to transfer shares of OKI
Semiconductor.
OKI Semiconductor will strengthen its business by leveraging OKI's
advantages in low power consumption, high-voltage processing,
digital/analog mixed processing and small-size packaging technologies,
as well as maximizing its manufacturing capabilities. Newer products,
such as system LSIs and logic LSIs, which have been manufactured at
outside foundries, will now be manufactured using ROHM's advanced
production process. In addition, the new company is expected to
increase its sales capabilities by leveraging the sales networks,
technologies and quality support networks of OKI and ROHM in Japan and
overseas.
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*T
About the new company subject for share transfer:
Company name: OKI Semiconductor Co., Ltd.
Address: 550-1 Higashi Asakawa Cho, Hachioji, Tokyo, Japan
Date of foundation: October 1, 2008
Capital: 20 billion yen
Representative: Hironori Kitabayashi, President and Representative
Director (Planned)
Business: Manufacture and sell system LSIs, logic LSIs,
memory LSIs and high-speed optical communication
devices, and offer foundry services (Planned)
*T
About Rohm Co., Ltd.
ROHM was established in Kyoto Japan in 1958 and designs,
manufactures and sells various types of semiconductors in consumer
electronics, mobile phone and network industries and other
applications. ROHM's design and manufacture teams provide high quality
products to customers through its global design centers and sales
networks world wide. ROHM involves over 20,000 employees world wide
and achieved 373Billion yen sales in FY 2008(year ended March 31,
2008). For additional information, please visit the web site at
http://www.rohm.com
About Oki Electric Industry Co., Ltd.
Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first
telecommunications manufacturer, with its headquarters in Tokyo,
Japan. OKI provides top-quality products, technologies and solutions
to its customers through its info-telecom system business,
semiconductor business and printer business. All three businesses
function as a collective force to create exciting new products and
technologies that satisfy a spectrum of customer needs in various
markets. Visit OKI's global web site at http://www.oki.com/.
Notes:
-- Names of companies and products are trademarks or registered
trademarks of the respective companies and organizations.
For Europe and Americas:
Naomi Takeuchi, +1-408-737-6279
Public Relations Division
press@oki.com
For Asia and Other Areas:
Akiko Horiguchi, +81-3-3580-8950
Public Relations Division
press@oki.com
Copyright Business Wire 2008
