Sources with knowledge of the matter, who requested anonymity due to the confidential nature of the discussions, have revealed that UTAC's current owner, Wise Road Capital, a Beijing-based private equity firm, has enlisted Jefferies to manage the sale process. Non-binding bids for UTAC are expected to be submitted by the end of this month, indicating a rapid progression in the divestiture. Neither Foxconn nor Jefferies offered comments on the ongoing process, while UTAC and Wise Road Capital did not immediately respond to inquiries.
This potential transaction unfolds against a backdrop of heightened geopolitical tensions and fierce technological competition, particularly between the United States and China, concerning global chip manufacturing. The semiconductor supply chain has historically been deeply integrated internationally. However, the U.S. has increasingly implemented measures to restrict China's access to advanced chips and high-end manufacturing tools, citing national security concerns that these technologies could benefit China's military—allegations Beijing firmly denies.
Industry observers suggest that UTAC's substantial presence in China makes it a particularly attractive target for financial and strategic bidders who are not based in the U.S. This dynamic reflects the complex geopolitical considerations now influencing M&A activity within the semiconductor sector.
For Foxconn, a major supplier to Apple and the world's largest contract electronics manufacturer, this move aligns with its publicly stated long-term growth strategy of diversifying into semiconductor manufacturing. The company has been actively expanding its capabilities in this space in recent years, aiming to enhance its vertical integration within the tech supply chain.
Established in Singapore in 1997, UTAC Holdings is a well-regarded provider of assembly and test services for a wide array of semiconductor chips. Its products serve diverse end-use applications, including consumer electronics, computing and security devices, and critical medical applications. Beyond its Singaporean headquarters, UTAC operates production facilities in Thailand, China, and Indonesia, supported by a global sales network that spans the U.S., Europe, and Asia. Its client base primarily includes "fabless" companies—those that outsource chip fabrication—along with integrated device manufacturers and wafer foundries.
While UTAC does not publicly disclose its financial performance, sources estimate its annual earnings before interest, taxes, depreciation, and amortization (EBITDA) to be around $300 million, underscoring its significant operational scale and profitability within the semiconductor services market. Should Foxconn successfully acquire UTAC, it would mark a substantial stride in its strategic pivot towards becoming a more integrated player in the global semiconductor ecosystem.