Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) – Foxconn to develop key electronic components for electric vehicles and digital healthcare.
The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said.
The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店).
Their cooperation is to start this quarter, the companies said in a joint statement.
“Through the cooperation with Hon Hai, we are able to enlarge our mutual technological benefits and resource sharing to maximize the value of both groups and see multiple growths in the future,” Yageo chairman Pierre Chen (陳泰銘) said.
The passive components maker would invest resources in advancing new technology development platforms for Hon Hai to provide customized and advanced electronic components primarily used in electric vehicles, medical treatment, artificial intelligence, robots and 5G devices.
The combination of global production, and operational and technical capabilities of high-end key electronic components would provide them win-win results and create even higher value, the statement said.
Yageo would not only focus on supplying the high-end 5G, automotive, industrial, aerospace and medical segments, but also provide its expertise and one-stop shopping platform for special semiconductor packaging and testing services, following a series of mergers and acquisitions, such as Fort Lauderdale, Florida-based Kemet Corp, it said.
“Through this strategic alliance, we will focus more on the development of new customers and products with joint resources to meet global customers’ needs in supporting the supply chain and functional design development, and come up with more value-added solutions,” Hon Hai chairman Young Liu (劉揚偉) said in the statement.
Yageo has 15 design and research and development centers and 42 manufacturing sites around the world and is a provider of quality design-in services.