MinebeaMitsumi, an international electrical components corporation, is set to acquire Hitachi Power Semiconductor Device (HPSD), a subsidiary of Hitachi Ltd. The acquisition is scheduled to be completed by March 2024 and is part of MinebeaMitsumi's strategic market expansion plan. The financial details of the acquisition have not been disclosed.
HPSD, founded in 2013 through a merger with Hitachi Haramachi Electronics Co, specializes in high-voltage, low-loss power semiconductor technologies. Their product range includes IGBT/SiC products for decarbonization market sectors such as electric vehicles (EVs), wind power generators, and railroads. They also produce high-voltage integrated circuits (ICs) that improve system efficiency and noise reduction in industrial and home appliances through motor control technology. Additionally, HPSD manufactures high-reliability diodes used in automotive applications.
The decision to transfer all shares of HPSD to MinebeaMitsumi came after discussions on value enhancement strategies with parent company Hitachi Ltd. It was determined that HPSD's growth would be best continued under MinebeaMitsumi due to its focus on analog semiconductors. The goals of this acquisition include enhancing strengths, expanding production capacity, and improving manufacturing efficiency.
By integrating HPSD's specialized knowledge, MinebeaMitsumi aims to enhance its product portfolio. Power semiconductors play a crucial role in optimizing energy efficiency and system reliability in industries such as automotive and renewable energy. This acquisition demonstrates MinebeaMitsumi's commitment to providing innovative solutions and comprehensive customer offerings through an expanded product portfolio.
MinebeaMitsumi has shown profitability over the last twelve months and has a strong return over the last five years. This indicates a strong financial position that is important for successfully integrating HPSD. Additionally, MinebeaMitsumi has raised its dividend for five consecutive years, reflecting financial stability that may reassure investors regarding this acquisition.
Hitachi Ltd , the parent company of HPSD, has consistently increased its earnings per share and maintained dividend payments for 30 consecutive years, indicating solid financial performance. Although the company has a high P/E ratio relative to near-term earnings growth, it has shown a significant return over the last week, suggesting market optimism about the announced acquisition.
