KUALA LUMPUR (Sept 23): JF Technology Bhd (KL:JFTECH) is taking up a 13% stake in California-based ATS Technology Services Inc (ATSI) for US$1.3 million (RM5.46 million) cash, in a bid to set up a semiconductor automatic test equipment test cell business in the US.

The stake subscription was done via its 75%-owned indirect subsidiary ATS Technology Services Sdn Bhd (ATSSB), who inked a shareholders’ agreement with ATSI shareholders.

With the investment, which is to be financed by internal funds and inter-company borrowings, ATSSB is entitled to nominate one director to ATSI's board, according to JF Tech in a bourse filing.

JF Tech manufactures and trades electronic products and components. It specialises in the design and manufacturing of test probes and test socket products for the semiconductor industry.

Under the deal, ATSSB will be responsible for sourcing and purchasing semiconductor test parts and components, while ATSI will engage with customers in the US to facilitate product/ service adoption, address inquiries, and provide support and troubleshooting services.

JF Tech said the investment brings strong synergies to the company, particularly for its test engineering solutions business.

“Together with its recent completion of acquisition of Q3 Probe Pte Ltd, which is specialised in front-end wafer testing, the investment in test cell business would further strengthen JF Technology’s position in the semiconductor value chain and expansion of its market in the US,” it added.

JF Tech’s share price closed three sen or 6.52% higher at 49 sen on Tuesday, giving the company a market capitalisation of RM454 million. Year to date, the stock has fallen 40%.

Read also:
JF Technology in RM6 mil probe card manufacturer acquisition