Jingyuan Electronics withdrew from the semiconductor manufacturing business in Chinese mainland, focusing on Taiwan's high-end test research and development and expansion
At the time of the turmoil in the global semiconductor industry, a remarkable news came: Jingyuan Electronics (KYEC), the world's eighth largest semiconductor packaging and testing manufacturer, announced that it would fully withdraw from the semiconductor manufacturing business in Chinese mainland, and at the same time dispose of its indirect stake in Suzhou Jinglong Technology. This decision has not only aroused widespread concern in the industry, but also made us think more about the future direction of the semiconductor industry.
Jingyuan Electronics' decision to withdraw from the Chinese mainland market this time was not achieved overnight. In the context of profound changes in the global semiconductor industry pattern, the company's senior management finally decided to adjust its strategic layout after careful consideration. According to Jingyuan Electronics, considering the current surplus of wafer manufacturing and packaging and testing products in Chinese mainland, and the expected further intensification of market competition in the next few years, the company decided to shift its focus to Taiwan's high-end test research and development and expansion.
Behind this strategic adjustment is Jingyuan Electronics' keen insight into market trends and deep understanding of its own advantages. As one of the world's largest professional testing plants, Jingyuan Electronics has rich experience and strong technical strength in the field of semiconductor testing. By increasing the R&D and expansion of high-end testing in Taiwan, the company will be able to better meet the demand for high-performance semiconductor products in cutting-edge fields such as AI and HPC, and further consolidate its leading position in the global semiconductor testing market.
At the same time, Jingyuan Electronics will also dispose of the equity of Suzhou Jinglong Technology indirectly held. It is reported that Suzhou Jinglong Technology is one of the important production bases of Jingyuan Electronics in Chinese mainland, mainly engaged in the packaging and testing business of analog and hybrid circuits. However, with the shift of the company's strategic focus, Suzhou Jinglong Technology's production line will be adjusted accordingly. Jingyuan Electronics said that it will conduct equity transactions with partners such as China Suzhou Industrial Park Industrial Investment Fund and Tongfu Microelectronics to ensure the smooth transition and sustainable development of Suzhou Jinglong Technology.
It is worth noting that in this equity transaction, Tongfu Microelectronics acquired 26% of the equity of Jinglong Technology for 1.378 billion yuan in cash. This move not only reflects the importance and layout of Tongfu Microelectronics in the field of semiconductor testing, but also indicates further changes in the pattern of the semiconductor industry in the future.
Industry experts pointed out that the timing of Jingyuan Electronics' withdrawal from the Chinese mainland market at this time was just right. In the context of the current rapid development of the semiconductor industry, mainland manufacturers are still actively expanding production, and the sale of Jingyuan Electronics' factory at this time will have a high market value. Once the relationship between supply and demand in the market reverses, the selling price may face greater pressure in the future. Therefore, Jingyuan Electronics' decision to withdraw from the Chinese mainland market this time can be described as a wise move.
For Jingyuan Electronics, withdrawing from the Chinese mainland market does not mean abandoning the mainland market. The company said that it will continue to maintain close cooperation with mainland customers to meet the needs of mainland customers through high-end test research and development and production expansion in Taiwan. At the same time, the company will also pay close attention to market dynamics and changes in customer needs, and adjust its strategic layout and business model in a timely manner.
Overall, Jingyuan Electronics' decision to withdraw from the semiconductor manufacturing business in Chinese mainland and increase Taiwan's high-end test R&D and expansion not only reflects the company's keen insight into market trends and deep understanding of its own advantages, but also indicates further changes in the global semiconductor industry pattern. In the future, Jingyuan Electronics will continue to maintain its leading position in the field of semiconductor testing and contribute more to the development of the global semiconductor industry.