Networking equipment maker D-Link Corp (友訊科技) on Tuesday said it plans to participate in a private placement of common shares in Cameo Communications Inc (友勁科技), aiming to bolster its partnership with the networking and communication products supplier.
D-Link plans to invest NT$800 million (US$28.19 million) to acquire 97.68 million Cameo Communications shares at NT$8.19 per share, D-Link chairman John Lee (李中旺) told a news conference at the Taiwan Stock Exchange after the firm’s board of directors approved the proposal earlier on Tuesday.
After the private placement, D-Link’s stake in Cameo Communications would increase to 39.10 percent from 17.35 percent, the company said.
Photo: Wang Yi-hung, Taipei Times
D-Link would retain one seat on Cameo Communications’ board, it said.
Taipei-based D-Link makes network switches, surveillance network cameras, firewalls, routers and smart home accessories, while Cameo Communications’ products include Ethernet cards, hubs, smart switches and routers.
The move would allow D-Link to expand its presence in the US market, Lee said.
“We continue to view the smart switch market favorably,” he said. “More importantly, Cameo Communications’ Tainan production facilities will become a strategic manufacturing base for US-bound exports,” Lee said. “There is a lot of potential for growth in the network switch market, especially smart switches.”
Smart switches, also called Web-managed switches, offer switch management features through a Web browser.
Cameo Communication manufactures half of its products in Tainan and the other half in Suchow, China.
However, production would shift toward Tainan after the firm in July 2019 gained Ministry of Economic Affairs approval to invest NT$550 million in its Tainan operations.
Lee said that the collaboration between the firms would start to bear fruit in six months to a year.
Capital Investment Management Corp (群益投顧) analyst Liu Yi-ho (劉宜和) yesterday said in a note that Cameo Communications is already one of D-Link’s main suppliers, but D-Link has placed some orders for low-priced products with Chinese manufacturers in the past few years.
However, business opportunities for non-Chinese networking and communications products have emerged in the US since the beginning of the US-China trade dispute, while another major supplier to D-Link, Alpha Networks Inc (明泰科技), was acquired by electronics conglomerate Qisda Corp (佳世達) last year, Liu said.
“We believe this private placement will further increase the partnership between D-Link and Cameo, as well as deepen their cooperation in products such as enterprise network switches and enterprise wireless routers,” he said.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Standard Chartered Taiwan on March 26 announced that it has partnered with international fintech firm FinIQ to build an “Automated Structured Products Pricing Platform.” The bank is also introducing products from global issuers including Goldman Sachs Group Inc, Barclays PLC and BNP Paribas SA. The new platform enables an end-to-end process whereby it finds the most competitive pricing across multiple issuers in a matter of minutes, followed by automated documentation and transaction execution, which significantly shortens time-to-market and delivers a superior wealth management experience. Standard Chartered Bank Taiwan CEO Anthony Yu (游天立) said: “Standard Chartered is increasingly leveraging its wealth management
RSS