Universal Scientific Industrial (Shanghai) Co., Ltd., a world-leading SiP (System in Package) manufacturing Company announced its intention to enter into the Equity Acquisition Agreement with Asteelflash, the second-largest EMS company in Europe for approximately $450 million.
The deal with Asteelflash will strengthen USI’s mix of manufacturing locations and expand its customer base of EMS business across the globe. The acquisition will also helps in production of diverse range of products for its clients, including cost-competitive ones in North America (USA, Mexico), North Africa (Tunisia), Eastern Europe (the Czech Republic and Poland) and in Europe (France, Germany and the UK) allowing better communication and geographical facilitation with customers sharing the same language and culture.
Asteelflash at present serves more than 200 clients and generates revenue of around $1 billion. The acquisition will help to optimize USI’s current customer base.
Chairman of USI Jeffrey Chen, said, “USI’s partnership with Asteelflash will make USI into a bigger platform with enhanced manufacturing know-how, extended global reach and more resources for R&D in cutting edge technologies. USI is a proven leader in the global EMS space, and together with Asteelflash and its team, we will continue to operate a world-class platform, better serve our customers, and expand into high-growth end markets, such as automotive, medica augment and industrial markets. This is another milestone in USI’s global development, and we will grow around the development strategy of ‘modularization, diversification, and globalization’, to seek for strategic opportunities, to increase our competitive leadership and to become an influential leader in the sector!”. In May 2019, USI Was Honoured the “TOP 50 Most Valuable Shanghai Brands The Bund Ranking” for the very First Time by China Brand Economy (Shanghai) Forum.
Prominent investments by USI in 2019 are mentioned below:
- January 2019: USI signed a contract to invest in the Huizhou Daya Bay project through a wholly-owned sub-subsidiary Huanrong Electronics (Huizhou) Co., Ltd. The subsidiary will produce mainly video control panels, cash registers, server motherboards, new electronic products, and other products. The Company’s investment in the Huizhou Daya Bay plant is a key project of the Company’s expansion and long-term development in South China.
- December 2018: USI entered into an agreement with Phi GP, Ltd to invest in automotive and intelligent industry development fund. The Phi GP’s team member has deep expertise and vast connections in their respective investing fields. The Fund focuses on exploration, upgradation, and transformation investment opportunities arising from the introduction of new technologies in different fields.
- March 2019: USI announced collaborate with Microsoft to launch world’s first Azure Sphere wireless and Bluetooth combo module for IoT (Internet of Things) applications. After the agreement, USI is able to offer customers a complete Microsoft-certified software module solution.
About Electronics Manufacturing Services (EMS)
Based on the end-user industry, the global EMS market is fragmented into telecom & IT, consumer electronics, industrial, automotive, aerospace, & defenses sector. The Global EMS market is expected to reach US$847 billion by 2025.
The global electronic manufacturing services market will witness significant growth in returns in the coming years. The EMS providers have expanded manufacturing facilities and enhanced expertise while offering additional services like testing and logistics to help OEMs and major consumer brands achieve better profit margins, lesser time-to-market, and flexibility. Due to low labor costs in developing economies, especially in the Asia-Pacific (APAC) region, reinforcing the electronic manufacturing services industry expansion in countries like China, India, and most Southeast Asian nations.
Asia Pacific dominates the EMS market by contributing approximately 65% of the total global market share. China & Taiwan are the main contributors, which accounted for almost 82% of the Asia Pacific EMS market. The developing countries like India, Vietnam, Indonesia, and Thailand are creating growth opportunities for the EMS market.
The globally growing consumer electronic device market is a major factor driving the growth of the Electronic Manufacturing Services market further. The international EMS players like Flex, Foxconn, Creation Technologies, Integrated Microelectronics, Inc, Wistron, Flextronics International, Celestica, and Benchmark Electronics are expanding their production base and investing in new developing markets to meet the growing supply-demand gap.
Asteelflash is a world leader in Electronic Manufacturing Services (EMS) with around 18 manufacturing facilities around the globe. The company employed approximately 6000 people worldwide. The Company offers a board range of products, including Printed-Circuit Boards Assembly (PCBA), Box-Build Assembly, Full Product Assembly, as well as Conformal Coating and Surface Treatment, Testing and Fulfillment. The Company provides seamless engineering, manufacturing, and supply chain solutions to various industries. It has production bases in France, Germany, the UK, the Czech Republic, China, Tunisia, and the United States of America.
About Universal Scientific Industrial
USI is a leading SiP (System in Package) manufacturing company. The company was founded in 1976 in China. It offers diversified products to customer in the sectors of wireless communication, computer and storage, industrial, and automotive electronics. USI operates around 10 production bases in mainland Taiwan, China, Mexico and Poland, and the company has more than 18,000 employees worldwide.