Changdian acquisition, new progress

On March 4 this year, the board of directors of Changdian Technology reviewed and approved the "Proposal on the Acquisition of 80% Equity of SanDisk Semiconductor (Shanghai) Co., Ltd. by Changdian Technology Management Co., Ltd., a wholly-owned subsidiary of the company", and agreed that Changdian Technology Management Co., Ltd. (hereinafter referred to as "Changdian Management Company") would acquire 80% of the equity of Sandisk Semiconductor held by SANDISK CHINA LIMITED in cash.

According to the announcement, the transaction price is based on the evaluation report issued by Beijing Asia Pacific Lianhua Asset Appraisal Co., Ltd. and is determined by negotiation between the two parties. After full communication and negotiation between the two parties, the transaction price is approximately US$624 million (approximately RMB 4.473 billion). After the transaction is completed, Changdian Management Company holds 80% of Sandisk Semiconductor's equity, and SANDISK CHINA LIMITED holds 20% of the equity.

According to the information, Changdian Technology is a domestic integrated circuit finished product manufacturing and technology service provider, providing a full range of one-stop chip finished product manufacturing services, including integrated circuit system integration, design simulation, technology development, product certification, wafer mid-test, wafer-level mid-line packaging test, system-level packaging test, chip finished product test, etc. In recent years, Changdian Technology has increased its investment in advanced technology fields. The multi-dimensional fan-out heterogeneous integration XDFOI technology platform has been stably mass-produced in many of its factories, providing domestic and foreign customers with advanced packaging solutions for chiplet architectures to meet the packaging needs of high-performance computing, high-bandwidth storage and other fields.

SanDisk Semiconductor is a packaging and testing company under Western Digital, wholly owned by SANDISK CHINA LIMITED. It is mainly engaged in the packaging and testing of advanced flash storage products, including iNAND flash modules, SD, MicroSD memory, etc. The products are widely used in mobile communications, industry and Internet of Things, automobiles, smart homes and consumer terminals.

In addition to Changdian Technology, Micron Technology's acquisition in the field of packaging and testing has also made the latest progress: on June 28 this year, Micron Technology announced the successful acquisition of Powertech Xi'an's assets. Powertech Xi'an was established in 2014 with the purpose of supplying DRAM using WBGA packaging technology for global computers to Micron Technology. Last June, Micron announced an investment of more than RMB 4.3 billion in its packaging and testing plant in Xi'an, including the construction of a new plant, the introduction of a new production line, the manufacture of a wider range of product solutions, and the decision to acquire the packaging equipment of Powertech Semiconductor (Xi'an) Co., Ltd. (Powertech Xi'an). At the same time, new employment contracts were provided to all of Powertech Xi'an's more than 1,200 employees to further expand the talent team and operation scale.

The industry believes that with the rapid development of technologies such as artificial intelligence, big data, and cloud computing, the demand for high-performance storage is growing, the importance of packaging and testing technology and production capacity in the storage field is becoming increasingly prominent, and competition is also intensifying. Against this background, the storage packaging and testing industry is expected to see more industrial integration and mergers and acquisitions to form a larger scale and stronger competitiveness.

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