Himax Sells 80% Stake in Shanghai Subsidiary, Targeting Completion by Year-End

Himax (3587-TW) held a board meeting today (31st) to approve the disposal of an 80% equity stake in its indirectly held mainland China subsidiary, Hongkang Technology Testing (Shanghai). The transaction value is approximately RMB 1.52 billion, equivalent to about NT$7.269 billion, with the payment to be made in cash. Upon completion, the investment group will hold 80% of Hongkang Shanghai, while Himax retains 20%. Future investments in China will be accounted for using the equity method.

Himax currently operates multiple sites across the Chinese market and plans to streamline its organizational structure alongside the sale. Post-sale, the company aims to concentrate resources on capturing market opportunities in the U.S. and Japan. Currently, revenue and profits from China account for over 30% of total earnings.

Himax Shanghai will be sold to a consortium comprising Shanghai Hongjia Enterprise Management Consulting Partnership (Limited Partnership), which includes Xiamen Industrial Investment Co., Ltd., Xiamen Venture Capital Co., Ltd., Shenzhen Kunbo Financial Management Consulting Co., Ltd., Suzhou Industrial Park Yuanhe Wuchi Equity Investment Partnership (Limited Partnership), Xiamen Kunhong Investment Partnership (Limited Partnership), as well as Red Peak Limited.

For years, Hongkang Shanghai has been deeply rooted in China's semiconductor analysis and testing market, providing comprehensive inspection and analysis solutions across the semiconductor supply chain—from raw materials to finished products. Services include reliability verification (RA), failure analysis (FA), material analysis (MA), surface analysis (SA), and chemical analysis (CA), with laboratories and service centers located in Shanghai, Suzhou, Xiamen, and Shenzhen.

In recent years, driven by trends such as AI, high-performance computing (HPC), advanced processes, and advanced packaging, the complexity of high-end chip design and manufacturing has continued to rise, further boosting market demand for high-end testing services. Particularly in AI chip development, demand for burn-in testing and related analysis and verification services has significantly increased due to high power consumption and high-performance requirements.

Himax believes this transaction will enhance group-wide resource allocation and operational efficiency. Going forward, Himax Technology will continue to focus on R&D in high-end analysis and testing technologies, strengthen global laboratory service capabilities, and expand into international markets to capture opportunities in the advanced semiconductor industry.

The transaction's closing is subject to shareholder approval and regulatory clearance, with all procedures expected to be completed and the deal finalized by the end of 2026.