On September 14, WT Microelectronics, a major IC channel manufacturer, held a press conference and announced that it would acquire 100% equity of Canadian IC distributor Future Electronics Inc. for US$3.8 billion, equivalent to approximately NT$121.2 billion, and jointly launch a global layout to serve global upstream and downstream customers. , the delivery is expected to be completed in the first half of 2024.

Wenzong Zheng, chairman and CEO of WT Microelectronics Technology, said: This transaction has significant transformational significance for WT Microelectronics Technology, Future and the overall supply chain ecosystem. Future has an experienced management team and excellent employees, which are highly complementary to WT Microelectronics technology in terms of product categories, customer coverage and global layout. Future's management team, all employees around the world, and locations and logistics centers will continue to operate and provide valuable value to the company. WT Microelectronics also invited Mr. Omar Baig, CEO of Future, to join the board of directors of WT Microelectronics after the transaction is completed. We look forward to working with him and Future’s outstanding colleagues around the world to jointly build a first-class electronic component distributor.

Future CEO and Chairman Omar Baig said: We are very excited to join WT Microelectronics Technology, which will benefit all stakeholders from this transaction. The two companies share a common culture and entrepreneurial spirit, allowing talented employees from around the world to unleash their talents. This merger is an excellent opportunity for WT Microelectronics Technology and Future to jointly create a world-class industry leader, allowing us to continue to execute our long-term strategic plan and continue to provide the highest level of service to our customers as we have for the past 55 years.

Regarding the source of funds, WT Microelectronics believes that it plans to use its own funds and bank financing loans provided by DBS as the source of funds for this transaction. This transaction has been unanimously approved by the WT Microelectronics technology board of directors and the Future board of directors. After obtaining the approval of the required institutions, Delivery is expected to be completed in the first half of 2024.

Future Electronics was founded in 1968 and is a global electronic component distributor in Canada. As of June 30 this year, its revenue in the first half of the year was US$2.9 billion, operating profit was US$228 million, and net profit after tax was US$184 million. A stable private company with operations in 47 countries and approximately 5,200 employees, it provides customers with diverse electronic component products from leading suppliers, as well as application engineering support and complete supply chain services.

This is another important milestone for WT Microelectronics in expanding its global presence after acquiring Excelpoint in Singapore. In April 2022, WT Microelectronics Technology, through its 100% owned subsidiary WT Semiconductor Pte. Ltd., acquired Shijian for a cash of 1.93 Singapore dollars per share and a total amount of approximately 232.2 million yuan (approximately 1.084 billion yuan) in Singapore dollars. WT Microelectronics acquired 100% equity interest in the company and completed relevant procedures at the end of the year. Through this merger, WT Microelectronics was able to strengthen its product line and rapidly expand its business.

The industry pointed out that Future Electronics has been rumored to be merged and sold for a long time, and ICdistributor had many contacts with it, but in the end it fell apart due to financial and price factors. However, in the second half of last year, the semiconductor boom began to freeze, and terminal inventories increased significantly. Many distributors had to help stockpile inventory at the request of the original manufacturers. In addition, the interest rates in the United States increased, and the interest expenses of distributors increased and their financial pressure doubled. It may be An important factor in accelerating the completion of this merger.