News Article
OKI signs definitive agreement with ROHM
The companies signed a definite agreement whereby OKI will transfer
shares of its semiconductor subsidiary.
Oki Electric Industry announced that
OKI and Rohm signed a definitive agreement on July 24 whereby OKI
will transfer 95% of the shares of its new semiconductor company, OKI
Semiconductor, 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 maximise 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 levering OKI’s advantages in low power consumption, high voltage processing, digital/analogue mixed processing and small size packaging technologies, as well as maximising 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 levering the sales networks, technologies and quality support networks of OKI and ROHM in Japan and overseas.
“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 maximise 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 levering OKI’s advantages in low power consumption, high voltage processing, digital/analogue mixed processing and small size packaging technologies, as well as maximising 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 levering the sales networks, technologies and quality support networks of OKI and ROHM in Japan and overseas.
