Trio-Tech Creates Joint Venture in China

Trio-Tech International announced it has entered into a joint venture with a Chinese company to provide testing and burn-in services for semiconductors.

The Van Nuys provider of semiconductor manufacturing and testing and the unnamed Chinese company are currently in the process of establishing the new joint venture company, the company said in a release. 

Trio-Tech Chief Executive S.W. Yong said the joint venture will operate a facility a few miles from Trio-Tech’s operations in Suzhou, China with a team that has expertise in burn-in testing and system level testing, or SLT, for advanced semiconductor products and assemblies. Burn-in is the industry term for specialized testing of semiconductor devices that usually takes at least 48 hours. 

“The technical expertise and influence of the Chinese company, coupled with our experience in the burn-in industry, will create a significant competitive advantage in providing SLT and burn-in testing services for integrated semiconductor assemblies in the rapidly growing electric vehicle industry,” Yong said in a statement. “We expect this joint venture to enhance the future growth of Trio-Tech.”

Mr. Yong noted that Trio-Tech will hold a majority equity ownership position in the new joint venture company, the company’s release said. 

The joint venture announcement was made on Monday. Shares in Trio-Tech (TRT) closed up by $1.23, or nearly 16 percent, to $9 on the New York Stock Exchange on Tuesday, a day when the Dow Jones industrial average closed up 1.4 percent.