Prosperity Dielectrics (PDC), a maker of ceramic dielectric powder, multilayer ceramic capacitor, chip resistors and inductors, will sell all the stake in its wholly owned manufacturing subsidiary in China to Inpaq Technology's subsidiary in eastern China at CNY94.8 million (US$14.6 million), with the transfer to be finished by the end of June 2021, according to the companies.
PDC's subsidiary specializes in production of coils and wire-wound inductors mainly used in reception and transmission of signals and the transaction will allow PDC to concentrate its capex to R&D for a mid- and long-term basis, the company explained. The subsidiary posted monthly revenues of NT$30-40 million (US$1.05-1.4 million) in 2020, equivalent to about 9% of PDC's consolidated revenues.
The acquisition of PDC's subsidiary can enhance Inpaq's circuit protection product line, enlarge its client base and hike its corresponding global market share, Inpaq indicated. Currently, Inpaq has 65% of consolidated revenues coming from RF antennas and 35% from circuit protection components.
Both PDC and Inpaq belong to the Passive System Alliance (PSA) Group led by passive component maker Walsin Technology. PDC recorded 2020 consolidated revenues of NT$5.199 billion, increasing 19.48% on year, while Inpaq had reported NT$5.247 billion for the year, up 24.04% on year.
