Content area
Full Text
Taipei, Taiwan- Yageo Corp. is poised to become the world's third- largest manufacturer of passive components with its recent decision to purchase Philips Electronics N.V.'s ceramic-passives business for $593 million in cash.
Yageo, Taiwan's leading provider of passives, has entered into a preliminary agreement to acquire Philips' discrete-ceramics and ferrite-ceramics businesses, which encompass 10 plants and two warehouses worldwide.
The deal will boost Yageo's global market share in ferrite ceramics to 26% from 3%, MLCC market share to 9% from 2%, and chip- resistor share to 24% from 17%, the company said. These increased shares will make Yageo the third-largest passive-components maker worldwide, behind Japan's Murata Manufacturing Co. Ltd. and TDK Corp., analysts said.
Pierre Chen, president and chief executive of the Taipei-based company, said the acquisition will "strengthen Yageo's global leadership in the components industry," and that "Philips' extensive customer base worldwide and the powerful research and development capabilities of these businesses complement Yageo's strengths" in manufacturing and distribution.
The demand for passive components such as capacitors and resistors...