Delta Acquires Alps Alpine's Power Inductor Business Assets to Enhance its Capabilities in Next-Generation Passive Components

TAIPEI, Aug. 29, 2024 /PRNewswire/ -- Delta, a global leader in power management and a provider of IoT-based smart green solutions, today announced the signing of an agreement by its subsidiaries, Delta Electronics (Japan), Inc. and Delta Electronics (Korea), Inc. to acquire the power inductor and powder materials business and assets, including production and R&D equipment, patents, and intellectual property from Japan-listed company Alps Alpine Co., Ltd. and its subsidiary, Alps Electric Korea Co., Ltd. (hereinafter referred to as "Alps Alpine") respectively, for approximately US$71 million (approx. NT$2,331,285 thousand). Alps Alpine's unique powder material patent technology helps create power inductors with low power loss that improve the energy efficiency of devices and equipment. After the acquisition is completed, Delta expects to integrate Alps Alpine's power inductor business in Japan and South Korea, combining their R&D capabilities, production facilities, and customer resources to enhance the capabilities of its passive components for data centers, AI high-performance computing, edge computing, electric vehicles, smartphones, and next-generation ICT products.

Ping Cheng, Delta's Chairman and Chief Executive Officer, said, "Delta's world-leading power inductor technology is also gaining substantial ground in the AI server and electric vehicle realms. Alps Alpine offers one-of-a-kind intellectual property in the field of power inductors and is also an industry-leading provider of innovative technologies. With this acquisition, we aim to create synergies to ultimately enhance Delta's patent and supply chain capabilities in benefit of our business development. By combining our own growing R&D capabilities in Japan with Alps Alpine's, we will accelerate the development of innovative products and technologies."

Hideo Izumi, Alps Alpine's President & CEO, said, "Besides being a significant enterprise in the fields of sensors and communications, and in automotive systems, Alps Alpine also leads the industry with its original unique magnetic metal material, which is featured as 'an amorphous material with a supercooled liquid region', a state-of-the-art technology that contributes to low Iron Loss and high Saturation Flux density for the electronics components sector. In the field of power inductors, Delta holds a reputable position in terms of technology, production capacity, and quality. As Alps Alpine's power inductor business grows, it needs resources to scale up quickly, so we believe that after integrating this business, Delta will accelerate the growth of its passive components segment."

Alps Alpine is a well-known listed company in the Tokyo Stock Exchange (stock code: 6770) with businesses divided into three major categories: Component, Sensor & Communication, and Modules & System. It provides products and services for multiple markets, including automotive, home appliances, mobile communications, gaming, and industrial equipment. The scope of this transaction involves the assets and equipment related to the power inductor under the "Sensor & Communication" business, with product applications including AI high-performance computing, smartphones, wearable products, solid-state drives (SSD), double data rate (DDR) devices, and more.

About Delta

Delta, founded in 1971, is a global leader in switching power supplies and thermal management products with a thriving portfolio of smart energy-saving systems and solutions in the fields of industrial automation, building automation, telecom power, data center infrastructure, EV charging, renewable energy, energy storage and display, to nurture the development of smart manufacturing and sustainable cities. As a world-class corporate citizen guided by its mission statement, "To provide innovative, clean and energy-efficient solutions for a better tomorrow," Delta leverages its core competence in high-efficiency power electronics and its ESG-embedded business model to address key environmental issues, such as climate change. Delta serves customers through its sales offices, R&D centers and manufacturing facilities spread over close to 200 locations across 5 continents.

Throughout its history, Delta has received various global awards and recognition for its business achievements, innovative technologies and dedication to ESG. Since 2011, Delta has been listed on the DJSI World Index of Dow Jones Sustainability™ Indices for 13 consecutive years. Delta has also won CDP with double A List for 3 times for its substantial contribution to climate change and water security issues and has been named Supplier Engagement Leader for its continuous development of a sustainable value chain for 7 consecutive years.

For detailed information about Delta, please visit: www.deltaww.com

SOURCE DELTA ELECTRONICS INC.