In response to the rising market demand for next-generation, customized high-end storage, Phison Electronics Corp. (Phison; 8299TT), a leader in NAND controllers and NAND storage solutions, acquired shares of its joint-venture company Nextorage Corporation (hereinafter referred to as "Nextorage") from its joint-venture partner, Sony Storage Media Solutions Corporation (hereinafter referred to as "SSMS"; SSMS is a wholly-owned subsidiary of Sony Group Corporation). The acquisition continues Phison’s expansion into the customized high-end storage market, including high-resolution image processing systems, automotive electronics, e-sports and gaming systems, factory automation, electronic medical equipment, and industrial robots, etc. Through the resources of local R&D engineers in Japan, it serves nearby Japanese customers and continuously improves service quality.
Japan is a major industrial country. In addition to industrial robots that are widely used globally, automotive electronics, e-sports and game systems, high-resolution imaging systems, electronic medical equipment, and factory automation equipment all occupy important positions in the world. In addition to high-speed data access, storage products required by this type of high-end application market often require a certain degree of customization and system-optimization adjustments for terminal applications. In other words, the standard storage products on the market cannot be perfectly matched and integrated with the system side, and therefore there is a demand gap for customization. The acquisition of the joint-venture company Nextorage, from joint-venture partner SSMS, which is strong in the customized high-end storage market, is expected to help Phison strengthen its high-end customized storage products to meet the needs of the Japanese and global markets.
Prior to this agreement, Phison has cooperated with Nextorage to win many design-in projects from Japanese customers. The main purpose of Phison's acquisition of the joint-venture company Nextorage from joint-venture partner SSMS is to increase Phison's local R&D resources in Japan and support Japanese customers. Going forward, Nextorage will maintain operational independence, and will assist in Phison’s future expansion and support of customized high-end storage needs in other regions around the world if needed. In addition, Phison will also actively introduce strategic partners to invest in Nextorage in the future based on the development needs of the Phison Group to jointly expand the customized, high-end market and continue to build an ecological chain throughout the market.