Foreign media: Tsinghua Unigroup plans to sell chip company

Bloomberg reported on Thursday (10th), citing people familiar with the matter, that Tsinghua Unigroup Co. is considering selling its French chip manufacturer Linxens.

Tsinghua Unigroup has been communicating with potential financial advisers after receiving news of interest in Linxens, which could be valued at between 2 billion euros ($2.2 billion) and 3 billion euros, people familiar with the matter said. In addition, in addition to considering the sale of Linxens, the group also has the idea of ​​​​initiating an initial public offering (IPO) of its main chip manufacturing subsidiary Unisoc.

It is understood that private equity firms and other companies in the industry have long expressed interest in acquiring Linxens, but these considerations are only preliminary, and Tsinghua Unigroup may not sell in the end. Representatives of Tsinghua Unigroup declined to comment on the above reports.

Last year, Ziguang Group went through a difficult restructuring. Beijing Zhilu Asset Management Co., Ltd. (referred to as Zhilu Capital) and Beijing Jianguang Asset Management Co., Ltd. (referred to as Jianguang Asset) were the leading parties. A number of companies were substantially merged and reorganized as strategic investors.

Tsinghua Unigroup acquired Linxens from private equity firm CVC Capital Partners in 2018. According to reports at the time, Ziguang Group completed the acquisition for approximately 2.2 billion euros ($2.6 billion).

Information shows that Linxens was founded in 1979 and is the global leader in smart card micro-connectors. In April 2017, Linxens acquired the Secure ID and Transactions division of SMARTRAC, a global leader in the development and production of RFID inlays and antennas. Currently, Linxens has become an international leading company providing micro-connectors and RFID antennas in the security and authentication markets. The company's products are widely used in smart cards, chips, computer module components, etc., involving various industries such as telecommunications, finance, e-government, medical care, and the Internet of Things.

The data further pointed out that Linxens has 8 production bases and 4 R&D centers in Europe, Asia and North America.

According to relevant industry chain research, Linxens strip packaging products account for approximately 70-80% of the foreign market. According to the announcement of related transactions of listed companies, as of September 30, 2018, Linxens’ total assets were US$370 million, and its net assets were US$351 million; it achieved operating income of US$147 million, and net profit of US$100 million (unaudited). According to Linxens’ official website, the company’s revenue in 2018 was US$400 million, with a year-on-year growth rate of 200%.

*Disclaimer: This article is original by the author. The content of the article is the personal opinion of the author. The reprinting by Semiconductor Industry Watch is only to convey a different point of view. It does not mean that Semiconductor Industry Watch agrees or supports the view. If you have any objections, please contact Semiconductor Industry Watch.

Today is the 3490th issue shared by "Semiconductor Industry Observation" with you. Welcome to pay attention.