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MosChip Semiconductor to acquire US-based NetMos

V. Rishi Kumar

HYDERABAD, Feb. 21

IN a significant development, the Hyderabad-based MosChip Semiconductor Technology Ltd has identified the Silicon Valley-based Netmos Technology Corporation for acquisition in an all share swap deal.

PricewaterhouseCoopers has been appointed as consultants to arrive at the valuation in order to facilitate the acquisition. Subject to all statutory clearances, this acquisition, to be made through stock swap mode, brings in the advantage of vertical gro wth in its line of business.

Netmos specialises in supplying semiconductors in the area of PCI bus peripherals while Moschip concentrates in the area of consumer electronics and data communications.

The Managing Director of MosChip, Mr C. Dayakar Reddy, told Business Line that ``the acquisition of NetMos provides a perfect fit to MosChip. Once the valuation is completed, we expect to make the necessary shares to acquire the company.''

MosChip had last month gone public with its maiden public offer to part-finance its expansion plans. Of the Rs 10.5-crore plan, Rs 2.6 crore was raised from the market.

This move is expected to benefit MosChip by providing expanded customer base such as Mega Power, Kouwell, Titan, Sun Rich, Speed Dragon, based in Taiwan, Hong Kong and China.

The Chairman of MosChip, Mr K. Ramachandra Reddy, has a 29 per cent stake in Netmos Technology Corporation.

MosChip provides application-specific integrated circuits to meet diverse market needs. It designs very large circuits, manufacturing with particular focus on consumer and data communication. Its focus is on product design and development which utilises standard cell approach portable to multi-foundries for process.

MosChip is a supplier of high-quality, cost-effective, and reliable product forms to its customers. By optimising the resources of its manufacturing plant, MosChip develops value-added semiconductor products for its customer needs.