News

Lee Chang Yung Group International PTE Ltd., a member of LCY Group invested by the Lee Chang Yung family (together with LCY Technology, are hereinafter referred to as the LCY Group) , announced today that it has signed a business and capital alliance agreement with DENKAI AMERICA INC., the consolidated subsidiary of NIPPON DENKAI in the U.S. (NIPPON DENKAI and DENKAI AMERICA INC. are jointly referred to as DENKAI Group), offering a US$9.5 million loan to support their business alliance collaborations and share experiences in operations and expansions in the U.S.

In addition to the US$9.5 million loan offered by LCY Group, LCY Group and DENKAI Group contemplate to strengthen its cooperation by the entry of license agreement between LCY Technology and DENKAI Group pursuant to which LCY Technology will have access to DENKAI Group’s certain technology license. Bowei Lee, Group Chairman of LCY Group, expected the alliance to bring synergy to their medium- to long-term goals. It is expected that LCY Group and DENKAI Group will be able to complete and expand geographical customer portfolios and strengthen technological cooperation in rigid and flexible boards as well as high-functioning field (high-frequency, high-density mounting, etc.).

LCY Group's products and market strategies complement those of DENKAI Group, with LCY Group exceling in the Asian markets, while DENKAI focuses on Japan and North America. Through mutual support, the collaboration will offer customers a global platform for production, sales, and technical maintenance. The partnership aims to enhance the production flexibility of both parties in manufacturing high-end PCB copper foils, which are used in packaging substrates, 5G, and advanced driver assistance systems (ADAS) applications in Taiwan, China, and the global market.

LCY Group believes that the combined technical expertise, product portfolio and rich customer experience of both sides will help DENKAI Group accelerate the realization of its mid- to long-term goals. The collaboration aims to maximize production and sales synergies through accelerated sales growth of specialized PCB copper foil.

Established in 1958, DENKAI Group specializes in the research, development and production of copper foil for high-end lithium-ion batteries, circuit boards, and 5G substrates; its two production bases are in Japan and the U.S.

Baker & McKenzie acted as legal counsel to LCY Group and Ivory Capital acted as LCY Group's financial advisor.