In a significant development within the semiconductor industry, China’s Shenzhen Longsys Electronics Co., Ltd. (301308.SZ), known as Longsys, has successfully acquired a 70% equity stake in Powertech Technology (Suzhou) Limited. The transaction, finalized on October 1, has resulted in the rebranding of Powertech Technology (Suzhou) Limited as Longforce (Suzhou) Limited, now under the direct control of Longsys Electronics (Suzhou) Co., Ltd., a newly established wholly-owned subsidiary of Longsys.
Longforce, formerly Spansion, has been a subsidiary of Powertech Technology Inc. (PTI) since 2009. Specializing in chip packaging, testing, and SMT, Longforce’s product portfolio includes flash memory chips, memory chips, and logic chips. With this acquisition, Longforce is poised to operate autonomously and is committed to enhancing its services in the packaging and testing sphere.
Under the terms of the service agreement signed, PTI and its affiliated companies will continue to provide steadfast support to ensure the seamless operation of Longforce. The company plans to invest significantly in research and development, as well as state-of-the-art packaging testing equipment and industry experts. These investments aim to establish Longforce as a high-end packaging testing hub, serving clients in sectors such as artificial intelligence, high-performance computing, smart vehicles, smartphones, and wearables.
Additionally, this strategic move aligns with Longsys’ broader objective to fortify its manufacturing footprint. By enhancing storage chip packaging and testing capabilities, optimizing capacity utilization, and strengthening collaborations with storage wafer foundries, Longsys aims to improve product quality, respond swiftly to customer needs, and maintain a steady production capacity. These initiatives are anticipated to bolster the company’s market presence and core competitiveness, enhancing long-term profitability.
Longsys has consistently emphasized the importance of a global presence in its storage business strategy. With a focus on implementing a domestic-international dual circulation, the company aims to enhance international operation capabilities, develop a flexible supply chain, and deliver premium services to its global clientele. Leveraging its proximity to customers, proprietary technologies, and local manufacturing advantages, Longsys is dedicated to offering high-quality services to its esteemed global customers.
This year, Longsys has achieved groundbreaking milestones in the development of self-developed main control chips. Coupled with advanced packaging and testing capabilities, these innovations are set to enhance the quality, performance, and security of Longsys’ core storage products, consolidating its position as a leader in the storage sector.
