Shenmao Technology Inc. agreed to acquire Darui Technology Co. for 227.5 million yuan (US$32 million) from Shanghai Phichem Material Co., expanding its foothold in the semiconductor packaging materials market.
The deal gives Shenmao full ownership of Darui Tech, a Kaohsiung-based manufacturer that ranks among Taiwan’s top five suppliers of ball grid array (BGA) solder balls used in advanced chip packaging. The target company specializes in materials for BGA, chip-scale packaging (CSP), and wafer-level CSP applications.
Shenmao expects the acquisition to significantly boost its market share in semiconductor packaging materials, where Darui’s products are used in CPUs, graphics processors, and mobile device chips. The company cited strong demand driven by artificial intelligence, high-performance computing, and electric vehicles.
Post-acquisition, Darui plans to build a second manufacturing facility between 2024 and 2026, which would double its current production capacity.
Shenmao reported NT$8.1 billion (US$255 million) in revenue for 2023, up 33% from the previous year. Its net income for the first three quarters rose 65% to NT$343 million, with earnings per share of NT$2.6.
