KUALA LUMPUR (May 30): JF Technology Bhd (KL:JFTECH), a manufacturer of high-performance test contacting solutions for global integrated circuit makers, has completed the acquisition of an 80% stake in Singapore-based Q3 Probe Pte Ltd from Q3's US-based parent company Spire Manufacturing Inc for US$1.36 million (RM6 million).
The acquisition was undertaken via its wholly owned subsidiary JF International Sdn Bhd. JF Technology also has an option to acquire the remaining 20% equity interest by Dec 31, 2027, it said in a filing with Bursa Malaysia on Friday.
“This acquisition further enhances our vertical integration and elevates the group within the dynamic semiconductor supply chain,” said its managing director Datuk Foong Wei Kuong in a statement.
“Q3’s expertise in front-end wafer testing perfectly complements our test engineering solutions business. This creates a powerful combination that enables us to expand the business on a global scale,” he added.
The acquisition follows a share purchase agreement signed on March 10, which includes a three-year performance-based earn-out structure. Under this structure, JF Technology will pay the vendor US$90,670 (RM401,000) annually — totalling US$272,010 (RM1.2 million) — contingent on Q3 meeting pre-agreed profit targets.
Q3, a probe card manufacturer, specialises in printed circuit board design and assembly, probe cards, and machined parts for industries ranging from semiconductors to LED lighting and broadband systems.
For the financial year ended Dec 31, 2023, Q3 posted a net profit of S$231,000 (RM767,000), according to JF Technology.
Foong said the group plans to set up a production line in Malaysia to manufacture Q3’s products for its base of over 200 multinational clients, reinforcing JF Technology’s position across the entire semiconductor value chain — from front-end to back-end testing.
“By bringing Q3’s capabilities into our fold, we are enhancing our test engineering solutions business and reinforcing our position across the entire semiconductor value chain. We are now the only provider in Malaysia with such a comprehensive probe card product line,” he said.
At market close on Friday, JF Technology shares closed down 2.5 sen or 5.21% at 45.5 sen, giving the group a market capitalisation of RM421.81 million. The stock has declined over 44% year to date.