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USI and Cancon to Establish Server Component Company
April 11, 2018 | Universal Scientific Industrial (Shanghai) Co. LtdEstimated reading time: 2 minutes
Universal Scientific Industrial (Shanghai) Co. Ltd, the electronics manufacturing services (EMS) arm of ASE Group, and Cancon Information Industry Co. Ltd have signed a memorandum of cooperation to establish a joint venture for the purpose of advancing the R&D, design and production of safe and controllable server products, and realizing the integration of resources in the upstream and downstream industry chains.
This memorandum specifically states that in order to meet market demand, the advantages of both parties in the industry will be combined to provide SOEs and customers in domestic market with solutions that comply with network security and related standards. After the terms and conditions listed in the memorandum are met, USI and Cancon will further discuss the execution of a formal joint venture agreement to be dedicated to the production of safe and controllable server products.
“We are very pleased to cooperate with the leader in the field of high-performance computing in China. Today’s announcement is a significant milestone for USI’s ‘expansion’ strategy. Through the arrangement with Cancon, USI will use advanced R&D and production technologies to further expand its domestic server product market,” said C.Y. Wei, President of USI.
“Through alliance between two giants, both parties will fully leverage their advantages in R&D, testing, design, production and market development, and integrate resources, to effectively improve the design, production and manufacturing level of safe and controllable server products,” said Nie Hua, President of Cancon.
The memorandum signed by the two parties for establishment of a joint venture is based on their respective technological advantages and production advantages. The final terms and conditions of this joint venture are still to be determined in the formal joint venture agreement after friendly negotiation between the two parties.
About Cancon
Dawning Information Industry Co., Ltd. (hereinafter referred to as “Sugon”) is a national high-tech enterprise established under the vigorous promotion of the Chinese Academy of Sciences and based on the major scientific research results of the National "863" Plan. On September 12, 2017, the Kunshan Municipal Government signed a Cooperation Agreement on "Security and Controllable Information Technology Industrialization Project of Chinese Academy of Sciences" with Sugon. The Chinese Academy of Sciences Holdings Co., Ltd., Sugon and Kunshan Hi-tech Group Co., Ltd. jointly initiated the establishment of China Science and Technology Controlled Information Industry Co., Ltd., and established the National Advanced Computing Industry Innovation Center and the Chinese Academy of Sciences Security Controllable Information Technology Industrialization Base. The main project base is located in the Kunshan National Hi-tech Industrial Development Zone. In 2018, is planned to build a National Advanced Computing Industry Innovation Center, a national integrated circuit major project, Security Controlled Chip R&D industrial, with an annual output of 1 million sets of security and controllable high-performance computer server.
About USI (SSE: 601231)
USI is a global D(MS)2 leading company providing design, miniaturization, material sourcing, manufacturing, logistics, and after services of electronic devices/modules for brand owners. USI is a member of ASE Group and has been listed in Shanghai Stock Exchange in 2012. It has many years of experience in the electronics manufacturing services industry and leverages the industry-leading technology of ASE Group, which enables USI to offer customer diversify product in the sectors of wireless communication, computer and storage, consumer, industrial, and automotive electronics worldwide. Through the sales service network in North America, Europe, Japan, China, Taiwan, and manufacturing sites in China, Taiwan and Mexico. USI has about 16,000 people worldwide. For more information, please visit the website www.usish.com.
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