reports that Foxconn, which makes Apple phones, is likely to be one of the potential buyers. The company has entered the semiconductor industry in recent years as part of its long-term growth strategy.
According to Reuters, sources revealed that Wise Road Capital, the Chinese parent company of UT Semiconductor Holdings, appointed investment bank Jefferies to launch a sales process to seek buyers and is expected to receive a non-binding acquisition proposal by the end of May.
Reuters asked Foxconn and Jefferies for confirmation, but the two companies expressed their reluctance to comment; Ute and Zhilu Capital have not responded yet.
Youte does not disclose its financial results, but its annual earnings before interest and taxes (EBITDA) is expected to be US$300 million.
Singapore-based UT was founded in 1997. Its company provides assembled chips and testing services, including consumer products, computers, security and medical equipment companies. The company has production facilities in Thailand, China and Indonesia, and its sales network covers the world, including Europe, America and Asia.
Taiwan's electronics giant Foxconn may acquire local semiconductor assembly and testing company UTAC Holdings for a purchase price of up to US$3 billion (about S$3.857 billion).
The report quoted sources as saying that because UT's business in China is very wide, the buyers it attracts may not be American companies.