Thursday 17th July 2008
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Shenzhen-based Timemaker is the world's largest supplier of high-spec quartz crystal blanks, a key component of crystal oscillators and resonators, Rakon said in a statement. The two companies formed a joint venture to make components for consumer products including GPS cellular phones starting next year. No price was disclosed.
Rakon expects to invest between NZ$45 million and NZ$70 million in China in the next five years to increase output. The deal marks the second such JV for Rakon, after its February announcement of a production alliance with India's Centum Electronics Ltd. in Bangalore. Rakon owns 49% of that JV.
"Having a presence in China will give us greater access to this market, putting us on the doorstep of our customers," managing director Brent Robinson said. "Our investment in Timemaker allows us to take greater control of our overall supply chain."
Shares of Rakon rose 3.5% to NZ$2.69. The stock has dropped 45% this year.
Timemaker began in 1996 and has annual production capacity for 200 million wafers and 10 million components, according to its website.
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