Friday, September 22, 2023

Kokusai Electric's Upcoming IPO: A Strategic Move in the Booming Semiconductor Market

Kokusai Electric is set to go public on the Tokyo Stock Exchange on October 25th, with an indicative share price of 1,890 yen per share. The IPO aims to raise 111.2 billion yen ($749.88 million) to fund research investment in the chipmaking equipment market. This move also serves as a partial exit for KKR, which previously purchased Hitachi's electronic equipment unit in 2017 and later spun off Kokusai.

In 2019, KKR attempted to sell Kokusai to Applied Materials for $3.5 billion, but the deal fell through due to regulatory hurdles in China. Applied Materials subsequently acquired a 15% shareholding in Kokusai. Kokusai Electric specializes in semiconductor manufacturing equipment, particularly in Atomic Layer Deposition (ALD) technology, with a strong market position, including a 23% share of the global ALD equipment market in 2020.

Kokusai Electric's ALD equipment portfolio includes products like TSURUGI-C²® for 300mm wafers and VERTRON® Revolution for 200mm wafers, known for their high performance and productivity. The company's main customers for ALD equipment include Samsung, SK Hynix, Micron, and Intel. Kokusai Electric's IPO is scheduled for September 23, 2023.

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