Recently, Lite-On Technology stated that the goal of 2020 is still to prioritize continuous improvement of profits. The new plant in Vietnam is about to be completed in the first half of 2020 and trial production in the second half. In addition, the solid-state storage (SSD) business unit (transferred to Toshiba Memory Holdings) is expected to close in the second quarter of 2020. At present, the SSD business unit accounts for less than 10% of the total revenue and is in a loss state. It is estimated that the completion of the SSD business will still have an impact on the overall revenue performance and profitability in 2020.
It is understood that on August 30, 2019, Lite-On Technology announced that the board of directors had passed the solid-state storage (SSD) business unit division to Jianxing Storage Technology Co., Ltd. (referred to as Jianxing Company), and the solid-state storage business unit was sold by equity Transferred to Toshiba Toshiba Memory Holdings Corporation. The business being sold is the business and assets of the solid-state storage division, including inventory, machinery and equipment, staff teams, technology and intellectual property rights, and customer-supplier relationships. The transaction consideration is tentatively set at US $ 165 million in cash.
Lite-On storage business was established in 1995. The business unit established the solid-state storage business unit for personal computers in 2008, and the solid-state storage business unit for enterprises and cloud computing data centers in 2014. The business unit is now the industry's leading developer and manufacturer of solid state drives, providing highly customized solutions for enterprise and personal computer customers, customers in the Americas, Europe and Asia.
Looking forward to 2020, Lite-On pointed out that its core business will still focus on optoelectronics, cloud computing, AI artificial intelligence related application products and services. As 5G mobile communication technology is gradually launched, it will drive demand for a larger number of communication power supplies and base station related products.