Softstar Entertainment Inc. has agreed to become the largest shareholder in semiconductor company ALi Corporation through a NT$500.27 million (US$15.5 million) private placement, positioning the gaming software developer to expand into hardware technologies.
The Taipei-based company will acquire 23.15 million shares at NT$21.61 per share through its subsidiary Yu Quan Smart Connection Co., securing a 16.51% stake in ALi, according to a board decision announced April 28.
The strategic investment marks a significant shift for Softstar, best known for developing popular game franchises in Taiwan and throughout Asia. Founded in 1987, Softstar has primarily focused on computer game software development, while ALi has specialized in integrated circuits for consumer electronics, particularly set-top box chips.
Industry analysts note the deal reflects growing consolidation in Taiwan’s technology sector as companies seek diversification. ALi Corporation, formerly known as Acer Laboratories, has struggled with profitability in recent years while attempting to expand beyond its traditional semiconductor business into smart display solutions and wireless connectivity products.
The private placement, structured under Taiwan’s securities regulations, will provide ALi with fresh capital while giving Softstar significant influence over the chipmaker’s future direction.
The transaction is expected to close pending regulatory approvals.
