Infineon Technologies today announced that it has signed an agreement to acquire ADMtek Inc, a fabless, integrated circuit (IC) design company based in Hsinchu, Taiwan, for approximately 80 million Euros.
Infineon will establish a new company, Infineon-ADMtek Co Ltd, headquartered in Hsinchu, which will focus on developing broadband customer premise equipment (CPE) ICs.
As part of the transaction, Infineon has also signed a supply agreement to provide products to Accton Technology Corporation and its affiliate companies for broadband CPE solutions. Accton Technology Corporation, together with its affiliates, is presently the largest shareholder of ADMtek.
The acquisition, a first for the German semiconductor manufacturer in Asia, also provides Infineon with close geographical proximity to leading Taiwanese ODM (Original Design Manufacturing) companies that account for more than 70 percent of the broadband modem and router CPE market in the world.
The acquisition, which will be structured as a statutory merger under Taiwanese law, is expected to be completed in April 2004, and is subject to approval by the shareholders of ADMtek, as well as to various government approvals.