USI Signed Joint Venture Agreement with Cancon to Jointly Establish a Server Component Company

SHANGHAI, Sept. 1, 2018 /PRNewswire/ -- On March 25 this year, USI, a giant electronics designer and manufacturer in the world (SSE: 601231), and Cancon Information Industry Co., Ltd. (hereinafter referred to as Cancon) announced to sign a Memorandum of Understanding on establishment of a joint venture. On August 31, Universal Global Technology (Kunshan) Co., Ltd. (hereinafter referred to as USI-Kunshan), a wholly-owned subsidiary of USI, signed the Joint Venture Framework Contract and Shareholder Agreement with Cancon, to formally launch the joint venture project. The two parties would jointly invest 220 million yuan to establish a joint venture, with Cancon holding 51% of shares, and USI-Kunshan holding 49% of shares. Cancon is a share-holding subsidiary of Dawning Information Industry Co., Ltd. (SSE: 603019, hereinafter referred to as "Sugon") that holds a 30.2% stake in Cancon.

In the future, USI and Cancon will deepen their cooperation in the R&D, design and production of safe and controllable high-performance server products, and integrate the industrial resources of USI and Sugon to provide solutions that conform to network security and related standard products for customers in the domestic market. 

"To grasp the current market opportunities, we offically sign a joint venture with USI and cooperate deeply in the field of secure and controllable high-performance server products. At the right time, we will integrate the respective advantages of the core technologies, products, markets, R&D, intelligent manufacturing, and supply chain etc. In the future, I hope to use this as an opportunity to promote the comprehensive cooperation between Sugon and USI," said Nie Hua, President of Cancon.

Jeffrey Chen, Chairman of USI, said, "I am very pleased that today USI has signed a contract with Cancon. USI is a reliable partner in the electronics manufacturing service industry and is currently accelerating the pace of 'expansion'. Sugon has good growth and potential in the field of independent security and controllable high-performance server products. Through joint ventures and strategic alliances, it could benefit both parties to jointly expand the market and business growth."

After formulating the "Expansion" strategy in early 2018, USI has signed a joint venture agreement with Qualcomm to establish a joint venture in Brazil, and acquired a 60% stake in the Polish subsidiary, Chung Hong Electronics Poland SP.Z.O.O., of Taiwan Lead Data Inc.. Its expansion plan and plan to invest in the establishment of a new factory in Shanghai, Kunshan, Mexico, and Taiwan are also in progress. USI has accelerated its steps of "globalization" to respond to the adjustment of customers' needs for product delivery and strives for more business opportunities.

About Cancon

Dawning Information Industry Co., Ltd. (hereinafter referred to as "Sugon") is a national high-tech enterprise established under the vigorous promotion of the Chinese Academy of Sciences and based on the major scientific research results of the National "863" Plan. On September 12, 2017, the Kunshan Municipal Government signed a Cooperation Agreement on "Security and Controllable Information Technology Industrialization Project of Chinese Academy of Sciences" with Sugon. The Chinese Academy of Sciences Holdings Co., Ltd., Sugon and Kunshan Hi-tech Group Co., Ltd. jointly initiated the establishment of China Science and Technology Controlled Information Industry Co., Ltd., and established the National Advanced Computing Industry Innovation Center and the Chinese Academy of Sciences Security Controllable Information Technology Industrialization Base. The main project base is located in the Kunshan National Hi-tech Industrial Development Zone. In 2018, is planned to build a National Advanced Computing Industry Innovation Center, a national integrated circuit major project, Security Controlled Chip R&D industrial, with an annual output of 1 million sets of security and controllable high-performance computer server.

About USI (SSE: 601231)

USI is a leading global D(MS)2company providing design, miniaturization, material sourcing, manufacturing, logistics, and after services of electronic devices/modules for brand owners. USI is a member of ASE Group and has been listed in Shanghai Stock Exchange in 2012. It has many years of experience in the electronics manufacturing services industry and leverages the industry-leading technology of ASE Group, which enables USI to offer customers diversified products in the sectors of wireless communication, computer and storage, consumer, industrial, and automotive electronics worldwide. Through the sales service network in North America, Europe, Japan, Mainland China, Taiwan, and manufacturing sites in Mainland China, Taiwan and Mexico, USI has about 17,000 people worldwide. For more information, please visit the website www.usish.com.

Photo - https://photos.prnasia.com/prnh/20180831/2225768-1

SOURCE Universal Scientific Industrial (Shanghai) Co., Ltd