DJ EQS-News: Pangaea and PI Semiconductor Announced Investment and Strategic Collaboration
EQS-News / 29/11/2021 / 12:03 UTC+8
Pangaea and PI Semiconductor Announced Investment and Strategic Collaboration
[Hong Kong - 29 November 2021] Pangaea Connectivity Technology Limited ("Pangaea" or the "Company", together with its subsidiaries, the "Group", stock code:1473) and PI Semiconductor (Shenzhen) Co., Ltd ("PI Semiconductor") jointly announced they have entered into an investment agreement ("Agreement"), under which Pangaea will subscribe for approximately 2.4% of the share capital of PI Semiconductor. It represents a total equity value of approximately RMB 8 million and will be funded by internal resources of the Group.
The strategic cooperation will further strengthen the two companies' position in the optical market and extend their presence in the value chain. The continuous 5G deployment and mega datacentre buildouts across the globe is driving demand for optical and electronic devices. In particular, the demand for 400G, 800G, 1.6T and the upcoming 3.2T optical transceivers are expected to reach USUSD18 billion by 2025 and USUSD20 billion by 2026, representing a CAGR of 17.7% and 14.0% respectively. The synergy provided by the investment will enable Pangaea to provide stronger support for customers to catch up with the growing optical market.
Richard Fung, Chairman of Pangaea said: "The partnership with PI Semiconductor will expand Pangaea's opportunity in the fastest growing areas of the USUSD20 billion optical component market. At the core of our strategy is a constant focus on developing an outstanding product portfolio with the most cutting-edge technology in our industry. With PI Semi's innovative R&D team, we are broadening our portfolio from existing optical devices to now include the industry-leading high-resolution and highly integrated optical controllers. This will better meet the needs of our global customer base by driving digital transformation and supporting the proliferation of next-generation mobile networks. I believe this marks a major milestone for Pangaea to be well positioned in the new energy, automotive, industrial control, medical and AIoT markets. I am confident that the partnership will create long-term value to our shareholders."
"The partnership with Pangaea is of great significance in expanding PI Semiconductor's product reach into the market place," said Matt Cui, Founder and CEO of PI Semiconductor. "The semiconductor IC industry has seen very strong growth, especially in the PRC, and more so in the analog sectors. The industry expects the analog market to grow to USUSD75 billion by 2025. With design presences in PRC, India, and the United States, PI Semi is dedicated to develop highly integrated devices to support extensive application areas from optical control, to industrial control, new energy (such as battery powered automotive, energy storage and etc.), medical and AIoT. Pangaea has been a long standing successful partner on the market for several of our focused markets, especially in the optical arena. I have strong faith that the partnership with Pangaea will provide guidance to our roadmap, accelerate our execution on products. We look forward to opening up new market opportunities with Pangaea and creating value to the market place."
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About Pangaea Connectivity Technology Limited
Founded in 1990, Pangaea has more than 30 years of experience in the telecommunication industry. Based in Hong Kong, the Company serves as a channel partner in the supply chain of the telecom and datacom connectivity industry. It offers a diverse range of custom solutions, innovative network connectivity products, and value-added services. End applications of the Company's products can primarily be categorised into: (i) telecom infrastructure; (ii) data centres; (iii) IoT and network connectivity products; and (iv) commercial lasers.
About PI Semiconductor
PI Semiconductor is a fast growing analog and mixed signal IC innovator based in Shenzhen, the People's Republic of China. It supports global customer base and operates from the PRC, India, and the United States. PI Semiconductor's high resolution and highly integrated precision control products support applications in optical communication, industrial control, new energy, medical instruments, and AIoT.
This press release is issued by DLK Advisory Limited on behalf of Pangaea Connectivity Technology Limited.
For enquiries, please contact:
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Tel: +852 2857 7101
Fax: +852 2857 7103
Email: pr@dlkadvisory.com
29/11/2021 Dissemination of a Financial Press Release, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com
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(END) Dow Jones Newswires
November 28, 2021 23:03 ET (04:03 GMT)
