The latest news is that the director of China's semiconductor packaging and testing company, Dian Technology, has announced that its wholly-owned subsidiary, Changdian Technology Management Co., Ltd. (hereinafter referred to as "Changdian Management Company"), plans to acquire 80% of the equity of Shengdian Semiconductor (Shanghai) Co., Ltd. (hereinafter referred to as "Shengdian Semiconductor"), a packaging and testing enterprise under Western Digital Corporation ("Western Data"), for $624 million (approximately RMB 4.5 billion) in cash.

It is reported that the agreement stipulates that Changdian Management Company plans to acquire 80% equity of Shengdian Semiconductor held by the seller in cash, and after full communication and negotiation between the two parties, the transaction consideration is about 624 million US dollars. After the completion of this transaction, Changdian Management Company will hold 80% equity of Shengdian Semiconductor, while SANDISK CHINA LIMITED will still hold 20% equity of Shengdian Semiconductor.

According to data, Shengdian Semiconductor was established in August 2006, mainly engaged in the research and development, packaging, and testing of advanced NAND Flash storage products. It is one of the largest flash storage product packaging and testing factories in the world. According to the official website of the Shanghai Municipal Government, Shengdian Semiconductor is one of the top 100 foreign-invested enterprises in Shanghai with operating income in 2022.

Changdian Technology stated that after the completion of this transaction, the selling party (SANDISK CHINA LIMITED) and its parent company (Western Data) will continue to be the main or only customers of Shengdian Semiconductor for a period of time, and their operating performance will be guaranteed to a certain extent. Changdian Technology will consolidate the financial statements of Shengdian Semiconductor Company based on its wholly-owned subsidiary owning 80% equity, which will help improve the company's long-term profitability and enhance shareholder returns.

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