Merger Approved at the February 6 Shareholders' Meeting... First Hurdle Cleared
Targeting Defense, Robotics, and Autonomous Driving with Mass-Production-Ready Infrared Sensors
The merger process between sensor specialist Edge Foundry and Hanwha Intelligence is progressing smoothly. Since the merger announcement on December 6 last year, the merger contract approval was passed at the extraordinary general meeting held on the 6th, and recently the price of the right to request purchase has also exceeded expectations, leading to an analysis that the merger has practically passed the critical stage.
In particular, Edge Foundry showed strength ahead of the merger with Hanwha Intelligence, recording a 52-week high. Previously, after the merger announcement, the stock price fell below the exercise price of the stock purchase right of 3,396 won, which was pointed out as a burden factor, but this has recently been resolved.
Hanwha Intelligence is a joint venture established in September 2021, with Hanwha Systems and Edge Foundry investing 26.3 billion won and 25.4 billion won respectively, totaling 51.7 billion won. Accordingly, Hanwha Systems holds 50.9% of the shares, and Edge Foundry holds 49.1%.
Through this merger, the 526,000 shares of Hanwha Intelligence held by Hanwha Systems will be converted into 6,856,820 shares (10.69%) of Edge Foundry, making Hanwha Systems the second-largest shareholder of Edge Foundry.
Over the past three years, Hanwha Intelligence has developed a 320x240 pixel resolution (QVGA) thermal imaging sensor compatible with complementary metal-oxide-semiconductor (CMOS) process production through research and development (R&D). They have secured production facilities and prepared a technical environment for mass production by utilizing external CMOS processes for excess demand.
Once this merger is successfully completed, Edge Foundry plans to expand its business into various industries such as defense, robotics, autonomous driving, and space industry based on Hanwha Intelligence’s uncooled thermal imaging sensor technology.
Nam Yong-hyun, CEO of Edge Foundry, explained at the corporate briefing on the 17th regarding the merger, “We have equipped machinery capable of mass production and are conducting tests on new products,” adding, “Full-scale supply will be possible within the first half of the year.”
He also stated, “Based on know-how such as process improvement, packaging method changes, and impurity management, we are securing high mass production yield to enhance price competitiveness,” and “We currently have an annual wafer production capacity of 2,400 units, which we plan to expand to 5,000 units.”
Since the merger announcement, Edge Foundry has actively secured funds. On December 17 last year, they paid in 16 billion won worth of convertible bonds (CB), and on December 20, they additionally secured 12 billion won through a paid-in capital increase, raising a total of 28 billion won. Furthermore, to support minority shareholders in securing stock purchase rights, they announced the issuance of 6 billion won worth of 17th series convertible bonds on the 6th.
A company official stated, “To facilitate smooth communication with investors, we plan to actively share the progress of the merger and future business plans and discuss various strategies to maximize shareholder value.”
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