Teco Electric & Machinery Co (東元電機), one of Taiwan’s leading suppliers of electric motors, yesterday announced plans to acquire local transformer maker Shenchang Electric Co (伸昌電機) for not more than NT$550 million (US$17.21 million).
The deal — which also includes forming a strategic alliance with Shenchang’s Indonesian affiliate PT Sintra Sinarindo Elektrik — is expected to begin contributing revenue to Teco Electric next quarter, the company said in a statement.
The deal comes as Teco aims to pursue global transformer business, especially in North America, and grab electromechanical business opportunities in Indonesia.
Photo courtesy of Teco Electric & Machinery Co
At a media gathering last month, Teco chairman Morris Li (利明献) unveiled the company’s three-year development plan that focuses on high-potential businesses, including green energy, power conservation, carbon reduction and electrification, as the company targets becoming a comprehensive solution provider.
In yesterday’s statement, Li said that the deal would help improve the company’s electrification product portfolio and achieve its goal of becoming an “industrial electrification integrator.”
Established in 1971, Shenchang primarily produces distribution transformers and has been active in the Indonesian market since 1996, serving companies such as Taiwan Power Co (Taipower, 台電), Formosa Plastics Group (台塑集團), PT PLN (Persero) and Siemens AG, Teco said.
Under the terms of the deal, Teco plans to acquire a 57.2 percent stake in Shenchang to become a majority shareholder and help expand Shenchang’s manufacturing facilities in Taiwan, it said.
The companies are also eying the transformer markets in Taiwan and North America, and plan to broaden their product portfolio to 69 kilovolt (kV) to 161kV power transformers in the near term, Teco added.
Moreover, the companies aim to provide green solutions amid the growing trend of climate awareness, rising demand for data centers and significant infrastructure upgrades in the US, Teco said.
The initial focus would be on meeting the enormous demand for distribution transformers in North America; in Taiwan, particularly in the industrial sector; for new energy projects and data centers; and for Taipower projects that aim to enhance the state utility’s power grid and operational resilience, it said.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
UNCERTAINTY: Investors remain worried that trade negotiations with Washington could go poorly, given Trump’s inconsistency on tariffs in his second term, experts said The consumer confidence index this month fell for a ninth consecutive month to its lowest level in 13 months, as global trade uncertainties and tariff risks cloud Taiwan’s economic outlook, a survey released yesterday by National Central University found. The biggest decline came from the timing for stock investments, which plunged 11.82 points to 26.82, underscoring bleak investor confidence, it said. “Although the TAIEX reclaimed the 21,000-point mark after the US and China agreed to bury the hatchet for 90 days, investors remain worried that the situation would turn sour later,” said Dachrahn Wu (吳大任), director of the university’s Research Center for
RSS