(Yicai) Sept. 23 -- Shares of Darbond Technology soared after the Chinese high-end electronic packaging materials supplier said it plans to buy a controlling stake in a leading Chinese semiconductor packaging material firm.

Darbond [SHA: 688035] was trading up 12.2 percent at CNY28.71 (USD4.07) as of lunch break in Shanghai today, after earlier surging as much as 19.4 percent.

Darbond will invest CNY1.4 billion to CNY1.6 billion (USD198.7 million to USD227.1 million) to acquire a 53 percent stake in Hysol Huawei Electronics from two of its main shareholders, the Yantai-based firm announced on Sept. 20.

Hysol Huawei Electronics provides specialized products and services to well-known Chinese and foreign semiconductor equipment manufacturers and packaging and testing enterprises, Darbond noted. Its main products are epoxy molding compounds, and its top overseas clients include Infineon Technologies, Onsemi, and Nexperia.

Hysol Huawei Electronics was China’s largest epoxy molding compounds supplier by sales and sales revenue last year, Darbond said, citing statistics from electronics industry consulting firm Prismark Partners. It ranked third and fourth, respectively, worldwide.

The deal will help Darbond expand its electronic packaging materials lineup, complement its existing products in terms of market, customers, and technologies, and accelerate its process of becoming a comprehensive high-end electronic packaging materials solution provider, the company pointed out.

Darbond Technology mainly produces high-end electronic packaging materials. But last year, the company's main source of revenue was adhesive materials for power batteries, while revenue from integrated circuit packaging materials accounted for only 10.4 percent of the total, according to its latest annual report.  

Editor: Futura Costaglione