Yageo Corporation Plans to Purchase Passive Electronic Component Business Lines from Royal Philips Electronics- May 2000

PASSIVE COMPONENT INDUSTRY MAY/JUNE 2000
Yageo Corporation (TWSE: 2327), a leading global provider of electronics passive components, announced recently that it has entered into a preliminary agreement to acquire the Discrete Ceramics and Ferrite Components businesses of Royal Philips Electronics. The Philips businesses are global in scope, with operations located in Europe, North America, and the Asia Pacific Region. The purchase price for the businesses is 650 million Euro. The transaction is expected to close by the third quarter of 2000. The Discrete Ceramics business line has top-five market positions in multi-layer capacitors (CMCs) and chip resistors (R-SMDs). In 1999, the business had annual sales of 235 million Euro and is expected to grow at double-digit rates this year. The Ferrite Ceramics business line is a pioneer in the industry with 1999 sales of nearly 100 million Euro, and a 50-year track record of industry leadership. “The acquisition of the discrete businesses of Royal Philips Electronics strengthens Yageo’s global leadership in the components industry,” said Pierre Chen, President and Chief Executive Officer of Yageo. “Royal Philips Electronics’ extensive worldwide customer base and the powerful research and development capabilities of these businesses will complement Yageo’s strengths in the manufacture and distribution of high-quality products to customers active in a broad range of markets.”“We intend to extend our leadership in components by continuing to invest in these businesses,’’ said Jerry Lee, First Executive Vice-President of Yageo. “We will create value for our shareholders and greater opportunities for the employees of these businesses through growth and efficiency.”

Based in Taipei, Taiwan, Yageo supplies passive electronics components to the computer, telecom and automotive industries. Yageo was founded twenty-three years ago as a manufacturer of resistors. Today,Yageo is Taiwan’s largest producer of passive components, employing more than 5,000 people in Taiwan, Singapore, the People’s Republic of China, Europe, and North America. The company’s focus on cost control and utilization of in-house technology enables Yageo to develop leading-edge products for the rapidly evolving electronics industry. With the acquisition of these businesses from Philips,Yageo will become a “one-stop shop” for the world’s leading consumers of electronics components. Philips Components, headquartered in Eindhoven, the Netherlands, is a world leader in supplying integrated digital electronics solutions in areas of display, storage and power management to global customers. It employs more than 40,000 people in over 40 countries around the world. Chase Manhattan is acting as the exclusive financial advisor and arranger of acquisition financing for Yageo

Additional Resources: (1) Passive Electronic Components: World Market Outlook: 2010-2015 ISBN # 1-893211-99-1 (2010). (2) Linear Resistors: World Markets, Technologies & Opportunities: 2009-2014 ISBN # 1-893211-24-X (7/2009) (3) Ceramic Capacitors: World Markets, Technologies & Opportunities: 2009-2014 ISBN # 1-893211-25-8 (December 2009)