HONG KONG -- ACL Semiconductors Inc. (OTC Bulletin Board: ACLO) ("ACL"), a leading China-based distributor of Samsung semiconductor products in Southern China and Hong Kong, has announced the establishment of a joint venture between ACL International Holdings Limited, a wholly-owned subsidiary of ACL located in Hong Kong ("ACL International"), and Tomen Devices Corporation ("Tomen"), a Japan-based seller of Samsung devices. The joint venture agreement, signed on March 9th, 2012 and effective on April 1st, 2012, will form ATMD (Hong Kong) Ltd ("ATMD" or the "JV"), the largest distributor of Samsung semiconductor products in the Greater China region. ACL International is expected to own 30% of ATMD, whereas Tomen will own 70% of ATMD.
This joint venture solidifies ACL's position as a leading total memory solution provider and marks a key strategic milestone for the company as it broadens its product range to become a one-stop distributor of electronic components. ATMD's full range of industry-leading Samsung semiconductor products will be complemented by best in class components from SAMCO (including wifi and camera modules) and SMD (smartphone panels).
Mr. Chung-Lun Yang, Chairman and CEO of ACL and CEO of ATMD, commented, "With this joint venture, ACL will be strategically positioned to outpace its competition's growth within the Greater China region, as well as move horizontally within the Asian electronic components markets. Further, ACL's inorganic growth strategies, such as the recent entry into a memorandum of understanding for an acquisition, will enable ACL to increasingly move vertically within these same markets."
Mr. Yang continued, "This joint venture is the best way to expand ACL's business. It is cost effective, highly controlled and without the complexity of amalgamating management teams or polarizing board members. The establishment of ATMD will benefit both our customers and our shareholders. It will fuel our growth in 2012 and beyond."
Rapid migration of manufacturers to China has been identified in 3 key industries: Computers; Consumer electronics; and Communication devices. By expanding its product range, ACL can leverage its established network of customers to tap into the growth in all three of these 'C' markets, particularly in the smartphone market.
ACL's net margin will benefit from the inclusion of higher margin components in the joint venture's portfolio. Combining ACL's geographic reach with Tomen's product range and working capital, the new joint venture's revenues are expected to contribute positively to ACL's revenue growth.
ACL Semiconductors Inc. (OTC: ACLO)