Inspur Group completes acquisition of Qimonda R & D center
Shanghai. August 12. INTERFAX-CHINA - Inspur Group, a leading Chinese IT product and solution provider, has fully acquired the research and development center of the now bankrupt German memory chip maker Qimonda, according to an Aug. 12 company announcement.
Inspur Group invested RMB 30 million ($4.39 million) to acquire the Qimonda R & D center, which possesses total assets worth over RMB 100 million ($14.64 million) and is located in Xi'an City, Shaanxi Province.
Shandong Sino-Chip Semiconductors Ltd., an Inspur Group subsidiary, will control the center, which will mainly focus on integrated circuit (IC) design. Inspur Group will make an additional investment of RMB 100 million ($14.64 million) to enhance the center's IC design capacity.
The center will be renamed Sino-Chip (Xi'an) Semiconductors Ltd.
Inspur Group's CEO, Sun Pishu, previously told Interfax that the economic downturn has provided Chinese companies with a unique opportunity to play catch up with foreign competitors through mergers and acquisitions, especially in the semiconductor memory chip sector.
Inspur Group generated a total of RMB 23.2 billion ($3.4 billion) in revenue 2008, up 20.13 percent year-on-year, and it roughly sustained the growth rate in the first half of 2009.
Hong Kong Stock Exchange-listed Inspur International Ltd., Inspur Group's IT service provision subsidiary, reported that its net profit skyrocketed by 728 percent year-on-year in 2008. Inspur Group's software subsidiary, Shanghai Stock Exchange-listed Shandong Inspur Software Co. Ltd., also saw its net profit soar in 2008 by 87.8 percent year-on-year.
Inspur Group has received strong support from the Shandong provincial government in exploring potential acquisitions and partnerships, and will continue to engage in M & A activities in the future.