Inari to team up with MIT to supply semiconductor process tools

Inari to team up with MIT to supply semiconductor process tools

18 Aug 2020

Inari Amertron Bhd is teaming up with Singapore-incorporated MIT Semiconductor Pte Ltd (MSPL) to set up a joint-venture firm in Malaysia to supply customised semiconductor process tools.

MIT, a subsidiary of China-based MIT Semiconductor (Tian Jin) Company Ltd, is principally engaged in the design and assembly of semiconductor manufacturing process tools.

Inari said the JV company will be set up in two months, with a proposed share capital of RM16.8 million held by Inari’s wholly-owned unit Inari Matrix Sdn Bhd (51%) and MPSL (49%).

The new company will operate at Inari’s plant in Batu Kawan, Penang or any other plants owned by the semiconductor player in the state, and will pay rent at the prevailing market rate.

“The proposed JV is a strategic move by Inari in collaboration with MSPL to invest in a business which is synergistic with the group’s business operations, whereby the JV entity will tap on MSPL’s expertise and technical know-how in providing semiconductor manufacturing solutions customised to Inari Group’s OSAT (outsourced semiconductor assembly and test) and/or EMS (electronics manufacturing service) requirements,” Inari said.

“In addition, the proposed JV represents an opportunity for Inari to enter into a new business segment of providing customised semiconductor process tools and solutions, which is in line with Inari’s investment plan to enhance and diversify its products, as well as revenue and earning streams,” it added.

Inari’s share price fell one sen or 0.49% to RM2.05 today, valuing the company at RM6.7 billion.

Source: The Edge Markets