2022.11.01
Sangyo Sosei Advisory to invest in On Semiconductor Niigata in inaugural private equity initiative
Since our founding in 2009 we had always had the hopes of bringing our unique industry experience, senior relationships, and vision for the Japanese TMT sector to the private equity industry. The semiconductor industry is one of our team's core areas of expertise within TMT. We have long believed in the opportunity for a domestic independent semiconductor foundry. This is a concept that we have been developing for years and now finally coming to fruition in the form of our proposed joint acquisition of On Semiconductor Niigata Co. with the investment arm of Mercuria Holdings, Mercuria Investment Co., and Fukuoka Capital Partners.
The proposed transaction represents the first investment in our private equity initiative. Similar to Sangyo Sosei Advisory 11 years ago, when we launched our business as the first TMT-focused local financial advisor, we now seek to be the first private equity fund focused exclusively on the Japanese TMT market. TMT represents a large proportion of transactions in private equity and venture capital in Japan to date. We have no doubt that this trend will continue given the need for fundamental change in the industry and among its leading companies in order to respond to rapid shifts in global technology and the competitive landscape.
JS Foundry is a specialist in analog and power semiconductors. There is significant local expertise in Japan for these products. They are critical components in new products such as electric vehicles and are expected to grow going forward. However, many local players are sub-scale and taking a cautious approach towards new investments. We also seek to build critical infrastructure around new technologies as well such as compound semiconductors. Ultimately, we seek to be an independent third party foundry solution in Asia outside of Taiwan to clients in Japan and abroad.
SSA is excited about the prospects for JS Foundry as well as the continued expansion of our private equity business. We humbly seek and value your ongoing support.
See the below press releases for more details.
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