Sancode's Philippine OSAT buy: $20.2M for Cirtek Electronics
What's the deal? Sancode Semi Private Limited, a subsidiary of India's Sancode Technologies, has agreed to acquire 100% of Cirtek Electronics Corporation, a Philippine Outsourced Semiconductor Assembly and Test (OSAT) firm, for $20.2 million in cash. The consideration is payable in two tranches: the first on closing, the second within one year.
What does Cirtek do? Incorporated in 1984, it provides packaging, assembly, and testing services — including wafer dicing, die attach, wire bonding, encapsulation, and final testing — to global Tier I customers across consumer electronics, industrial, telecommunications, and automotive segments.
The financials: Cirtek reported turnover of $26.62 million in FY25, up from $23.08 million in FY24. The purchase price equals roughly 76% of its FY25 turnover, pointing to a premium for the firm's technology and customer relationships rather than a pure revenue-based valuation.
What's the endgame? Sancode wants to secure OSAT technology and intellectual property, and use the transfer of process know-how to accelerate the ramp-up of its Odisha plant in India. The deal also gives it an immediate revenue uplift and a foothold in the global semiconductor supply chain.
Why now? The deal needs only filings under the Overseas Investment framework and FEMA, 1999, plus satisfaction of condition precedents — no broader regulatory approvals. It is not a related-party transaction, and no promoter group holds an interest in the target.
The signal: The Philippines has become an active site for OSAT expansion and asset transfers rather than a new destination. In July, Taiwan's PowertechDealroom has a profile for this one. Try Dealroom →/GreatekDealroom has a profile for this one. Try Dealroom → agreed to buy onsemi's Philippine packaging-and-test site, while Amkor and ASE pour money into advanced-packaging capacity. Sancode's $20.2 million purchase is a modest entry into an established market, with its payoff hinging on Cirtek's capabilities, customer base, and the buyer's ability to integrate the business.
Read more: scanx.trade
Image credit: Generated with Gemini
