BEIJING (Reuters) -Chinese chip assembly and testing firm JCET Group said on Monday it plans to buy an 80% stake in a Shanghai facility owned by Western Digital Corporation for about $624 million in cash.
SanDisk Semiconductor Shanghai makes products such as iNAND flash memory modules and MicroSD components used in telecommunications, automobiles and consumer devices, JCET said in a filing.
The deal, pending Chinese regulatory approvals, will expand JCET’s market share in the data storage industry, JCET said in its filing to the Shenzhen Stock Exchange.
Buying the stake will allow JCET to enhance its partnership with Western Digital, which has been a long-term, key client, JCET said.
Western Digital and connected parties will remain SanDisk Semiconductor Shanghai’s major clients, JCET said.
(Reporting by Roxanne Liu, Ella Cao and Kane Wu; editing by Ed Osmond and Jason Neely)
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