Foxconn among potential bidders in $3B deal for chip assembly company UTAC – report

Foxconn Technology (OTCPK:FXCOF) is among potential bidders for UTAC Holdings in a transaction that could value the Singapore-based semiconductor assembly and testing company at about $3B, Reuters reported, citing people familiar with the matter.

Chinese private equity firm Wise Road Capital — which owns UTAC — has hired Jefferies to run a sale process and anticipates to take non-binding bids by the end of May, the report added.

Foxconn and UTAC did not immediately respond to a request for comment from Seeking Alpha.

UTAC could see interest from financial and strategic bidders which are not from the U.S. because of the China presence, the report noted.

The U.S. and China have been in a trade tussle and only recently came to a tentative agreement to reduce the tariffs imposed on each other’s goods. Last week, the two superpowers agreed to a deal that would see each country cut tariffs by 115%. Besides tariffs, the U.S. has imposed curbs on the export of advanced chips used for AI to China.

The Apple (AAPL) supplier — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — in recent years has expanded into making semiconductors as part of its long-term growth strategy, as per its website.

UTAC provides assembly and test services for diverse semiconductor devices, according to the company’s website.

UTAC does not disclose its financial results but its estimated annual earnings before interest, taxes, depreciation, and amortization, or EBITDA, are about $300M, the report noted.