European mixed-signal, RF and power management IC company Dialog Semiconductor plc plans to take a 40 percent stake in Dyna Image, a wholly-owned subsidiary of Lite-On Semiconductor in a deal that will close in June 2015. ShunSin Technology Holdings Ltd., a subsidiary of Hon Hai Precision Industries Co. Ltd., which trades as Foxconn, is also set to take an equity position in Dyna Image (New Taipei City, Taiwan), which is already selling optical, inertial and environmental sensors into China.
Dyan Image was created as a wholly-owned subisidiary of Lite-On Semiconductor in 2011.
It is also notable that an attempt to merge Dialog with Austria's AMS AG, which would have brought access to similar sensor technologies, failed in 2014 (see AMS, Dialog merger talks fail). This deal can be seen as an alternative implementation of Dialog's strategic goals that adds sensor capability to Dialog's portfolio while improving its access to Chinese markets.
The value of Dialog's investment and whether it would be made in cash or stock, was not disclosed but after the deal closes Dialog will be the largest shareholder. This implies that the remaining 60 percent will be split more or less equally between Foxconn and Lite-On.
Foxconn's holding will be made through ShunSin Technology (Zhongshan) Ltd., part of its subsidiary ShunSin Technology Holdings Ltd.
The aim of the venture is to accelerate Dialog's entry in to China's consumer electronics markets and the adoption of Dyna Image's sensors in the smartphone and Internet of Things markets. The combination of Dyna Image sensors, Dialog's power management and Bluetooth ICs and ShunSin's packaging expertise should enable Dyna Image to develop and supply innovative smart sensing systems, Dialog said. This can translate into increased system content for smartphones, wearables and smart digital lighting devices.
Dialog CEO Jalal Bagherli and senior vice president Mark Tyndall will join the board of directors of Dyna Image. Sean Li from Lite-On Semiconductors will lead the joint