By Kane Wu
Hong Kong (Reuters) -Taiwan's Foxconn, also known as this Hai Precision industry (2317.tw. Hhnkh. Seed), Among the potential bidders for the Singapore Semi -conductors and Utac Holdings business testing in a deal that could appreciate the company at around $ 3 billion, two people with knowledge of the matter said.
The owner of UTAC, the private equity company from Beijing, Wise Road Capital, has employed Jefferies to run a sales process and is expecting the field of non -binding proposals by the end of this month, the sources said.
Both sources refused to be named as the information was confidential.
Foxconn and Jefferies refused to comment, while Utac and Wise Road did not immediately respond to a request for a comment.
The manufacture of -EANG world chips has been amazed by concerns about national security and technological competition in recent years, especially between the United States and China.
Historically, semiconductors have relied on a very global manufacturing supply chain, but the US has moved to curb China's access to advanced chips and high-end manufacturing equipment, citing risks that these would benefit China's army, which Beijing denies.
The sources said UTAC is likely to attract interest from financial and strategic bidders that they are not from the United States because of its presence in China.
Foxconn, Chief Supplier to Apple (Aapl) And the world's largest contract electronics manufacturer, has expanded to make semiconductors in recent years as part of its long-term growth strategy, says its website.
Founded in 1997 in Singapore, UTAC provides assembly and testing services for semi -conductor chips with various end uses, including user devices, computing and security and medical applications.
Outside of Singapore, it also has production facilities in Thailand, China and Indonesia and with a -rean world sales network that handles the US, Europe and Asia, according to the company's website.
Its customers are mainly “fabless” companies – meaning those who are outsourcing fabrication – as well as integrated device manufacturers and wafer foundries.
UTAC does not reveal its financial performance but its annual earnings are estimated to be interested, taxes, depreciation and amortization about $ 300 million, the sources said.
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