Dialog and Foxconn subsidiary Xunxin Technology invest in Taiwan Dunhong Technology

Dialog Semiconductor (Frankfurt Stock Exchange: DLG), a supplier of highly integrated power management, AC/DC power conversion, solid-state lighting (SSL) and Bluetooth® Smart wireless technologies, today announced that it will invest in Dunhong Technology (a wholly owned subsidiary of Dunnan Technology Co., Ltd., a member of the Lite-On Group) to hold a 40% stake in the company. The transaction will be completed in June 2015. Simultaneously, Foxconn subsidiary Xunxin Technology Holdings Co., Ltd. (TSE: 6451) will also acquire a stake in Dunhong Technology. Dialog CEO Jalal Bagherli and Senior Vice President of Corporate Development Mark Tyndall will join Dunhong Technology's five-member board of directors.

Dunhong Technology was founded in 2011 and is a subsidiary of Dunan Technology Co., Ltd. The company focuses on the design and production of optical, inertial and environmental sensors used in consumer electronic systems, and has already supplied optical sensors in batches to the Chinese mainland market. Sean Li from Dunan Technology will serve as the CEO of the new joint venture.

Dialog Semiconductor will work closely with Dunhong Technology to develop sensors and sensor solutions for smartphones, wearable devices and IoT applications. Sensors for ambient light and proximity sensing, as well as for color and gesture analysis, will be the first products after the establishment of the new company. In addition, Dialog will also carry out strategic cooperation with Dunnan Technology and Xunxin Technology on advanced manufacturing and packaging technology (derived from the joint investment of both parties in Dunhong Technology) to further enhance the competitiveness of its products and solutions. At the same time, Dialog will continue to provide more system-level solutions to customers and consolidate its market leadership in power management, smart Bluetooth technology for consumer electronics, and solid-state lighting for smart homes.

Commenting on the agreement, Jalal Bagherli, Dialog CEO, said: “This investment marks Dialog’s entry into the sensor market. While we build on our leadership in areas such as power management, audio and Bluetooth for smartphones, IoT and smart lighting, we are also closely involved in the development of technologies that complement these applications. This is another important step in our strategy to gain a higher market share in the fast-growing smartphone, smart lighting and IoT markets in Greater China through innovative local commercial partnerships. We will continue to provide our customers with best-in-class technologies and help them quickly and reliably integrate them into their product designs to improve end-product performance, reduce costs and shorten time to market.”

Sean Li, CEO of NewDunHong Technology, added: "We warmly welcome the leading technologies and products that Dialog and SST will bring. Dialog's outstanding reputation for pioneering innovation in mixed-signal technology and SST's advanced packaging solutions will enhance our market position in high-growth consumer markets, especially in smartphones and the Internet of Things."