Alpha and Omega Semiconductor Limited has entered into an equity transfer agreement to sell approximately 20.3% of its equity interest in its joint venture, CQJV, a power semiconductor packaging, testing, and 12-inch wafer fabrication facility in Chongqing, China. The agreement, announced today, involves a strategic investor paying AOS $150 million in four installments, subject to certain conditions, with the transaction expected to close by the end of 2025. Prior to the sale, AOS held a 39.2% stake in CQJV, and this transaction represents roughly half of that holding.
Based on the sale’s valuation, AOS anticipates recording an impairment charge on its CQJV equity investment for the quarter ended June 30, 2025, on a GAAP basis, while excluding this charge on a non-GAAP basis. The proceeds from the sale will provide capital for AOS to invest in technology, research and development, and asset acquisitions to support its business operations. This is expected to aid the development and distribution of power semiconductor products to global customers.
The transaction does not affect AOS’s ongoing business relationship with CQJV. AOS will maintain access to CQJV’s wafer manufacturing and assembly and test capacity under existing agreements, while safeguarding its proprietary technology and intellectual property. Stephen Chang, AOS’s Chief Executive Officer, stated that the sale aligns with the company’s monetization strategy and supports value creation for shareholders. The funds will be reinvested in personnel, tools, and intellectual property to expand AOS’s product portfolio, while preserving the supply chain partnership with CQJV.
Needham & Company served as the exclusive financial advisor to AOS, and ROTH Capital Partners provided a fairness opinion to the Special Committee of AOS’s Board of Directors for the transaction.
