Ayalas take majority stake in PSi Technologies

MANILA, Philippines - Integrated Micro-Electronics Inc. (IMI), the electronics manufacturing unit of the Ayala Group, and a venture capital investment firm, are acquiring a combined 67 percent of PSi Technologies Inc. for $30 million.

PSi is a leading independent provider of power semiconductor assembly and test services to semiconductor firms.

In a disclosure to the Philippine Stock Exchange, IMI said the sale and purchase agreement it had entered into allows it to own 56 percent of PSi, with partner Narra Venture Capital II getting 11 percent.

Arthur Tan, IMI president and chief executive officer, said: “With the growing convergence of power semiconductor assembly and test services and EMS, the impending purchase of IMI of PSi Technologies will enable the IMI Group to enhance its service offering to its OEM customers.”

“The acquisition will strengthen PSi Technologies toward growing and developing its business while enhancing the prospects of offering an integrated hybrid power solution in a multichip module (MCM) that contains the advanced manufacturing technologies of IMI and PSi Technologies,” Tan added.

The MCM technology addresses the trend in miniaturization of electronic devices.

Sherisa Nuesa, IMI chief finance officer, said IMI and NarraVC will infuse fresh equity into PSi Technologies.

She, however, said while PSi Technologies’ contribution to IMI is not expected to be significant for the balance of the year, PSi Technologies is poised for a turnaround in 2011 with a stronger capital and shareholder base and on assumption of steady growth in the power semiconductor and MCM markets.

IMI is a vertically integrated electronics manufacturing services (EMS) provider to leading global original equipment manufacturers (OEMs) in diversified markets that include those in the automotive, industrial, medical, solar energy, telecommunications infrastructure, storage device, and consumer electronics industries.

Committed to cost-effective and top-quality customized solutions, IMI’s comprehensive EMS capabilities, broad geographic reach, and strong Asian manufacturing presence allow it to take on specific outsourcing needs.

 NarraVC manages funds of limited partners such as Dado Banatao, Ayala Corp., First Philippine Holdings and the Cebuana Lhuillier Group with Paco Sandejas as its managing partner. Its funds are invested in high-technology entrepreneurs and companies (mostly private) that provide opportunities for accelerated growth due to unique technological advantages. It also helps in bringing the Philippines and Asia to these investments through introductions to markets or partners.

IMI recently opened its sixth facility in China, hoping to take advantage of the anticipated recovery of the global electronics industry.

The new factory, located in Chengdu, Sichuan province in southwestern China, offers a wide variety of electronics manufacturing solutions from printed circuit board assembly to full product assembly for OEMs in various markets such as those in the industrial, automotive, medical and telecommunications infrastructure industries.