KUALA LUMPUR: Inari Amertron Bhd's indirect wholly-owned subsidiary, Amertron International Ltd, has entered into a joint-venture (JV) contract with CFTC (Yiwu) Equity Investment Fund Partnership (Ltd Ptd) and CFTC Equity Investment Management (Beijing) Co, Ltd to set up a JV company, Yiwu Semiconductor International Corporation.
In a filing with Bursa Malaysia, Inari said the JV company will bring together the strengths and expertise of all parties in carrying out outsourced semiconductor assembly and test (OSAT) manufacturing and related businesses in China for the local market.
"By adopting engineering management methods, innovative management systems, advanced technologies and integrating high quality resources, the JV company shall provide best-in-class products and services to its customers and to the market at large and, through effective operation of the JV company, we aims to provide good investment returns to the parties," it said.
Inari said the JV company is a limited liability company incorporated on Jan 4, 2021 under the laws of the People’s Republic of China.
It current has a registered capital of 770.0 million renminbi, of which CFTC (Yiwu) Equity Investment Fund Ptd holds 770.0 million renminbi, representing 99.99 per cent of the total equity capital in the JV company.
Meanwhile, CFTC Equity Investment Management (Beijing) Co., Ltd holds 1,000 renminbi.
The current paid-up capital of the JV company is 570.0 million renminbi, it said.
Inari also noted the current business scope of the JV company includes the manufacture, design and sales of integrated circuit (IC) chips and electronic components.
As of to-date, the JV company has not commenced business yet, it added.
"The JV will enable Inari Group to improve its existing captive business strategy and allows it to expand and add onto the already existing Amertron Technology (Kunshan) Co., Ltd operations in the burgeoning China market.
"This would also enable the group to diversify its product and customer base as well as adding revenue and earning streams with a potential initial public offering (IPO) in China in later stages," it added. - Bernama