Carlyle Asia Growth Capital Group Invests in Nakaya Microdevices Corporation

Tokyo, Japan - Global private equity firm The Carlyle Group (Carlyle) today announced it has signed an agreement to invest JPY1.5 billion (or US$12.5 million) in Nakaya Microdevices Corporation (Nakaya), a provider of semiconductor assembly and testing services based in Japan. The investment will be made through Carlyle’s Asia Growth Capital Group and will fund the expansion of Nakaya’s manufacturing capacity and enhancement of its operating efficiency.

Attracted to Nakaya’s impressive performance and strong growth potential, Carlyle is committed to actively supporting the company’s expansion through a Board representation. Carlyle will also help identify top-notch management talent to supplement the existing management team and evaluate merger and acquisition opportunities to strengthen Nakaya’s industry position.

Mr. Yoshifumi Nakaya, CEO and Founder of Nakaya, said, "Japan’s back-end semiconductor processing industry is experiencing an industry-wide restructuring that is expected to bring revolutionary changes and have far-reaching impact throughout. Carlyle’s deep industry experience and broad access to semiconductor and technology companies will help us to stay at the forefront of these trends."

Haruyasu Asakura, Managing Director and Head of the Japan Growth Capital team, said "We see great growth potential in back-end semiconductor processing in Japan. Nakaya, with its best-in-class service quality, is uniquely positioned to benefit from the growing outsourcing trend in the semiconductor industry around the world. Nakaya is one of the best independent semiconductor assembly and testing providers and is led by a proven CEO, Mr. Nakaya, and his strong management team. Carlyle will support Nakaya’s next stage of growth by leveraging its global network and the collaborative knowledge we gained from various investments in the semiconductor industry."

Wayne Wen-Tsui Tsou, Managing Director and Head of the Carlyle Asia Growth Capital Group, said "Nakaya is the first investment in Japan by Carlyle Asia Growth Partners III, our latest fund that was closed in June last year with total commitments of US$680 million. With a distinct focus on growth companies with strong profitability and sound management, our group has already made seven investments from this fund. The track record we built in four key target markets––Japan, China, India and Korea––is supported by our ability in and commitment to bringing strategic value to portfolio companies. Continuing this partnership approach, we are dedicated to helping Nakaya to become a premier leader in its space."

As an integral part of Carlyle’s Asia Growth Capital Group, the Japan Growth Capital team was established in 2006 to provide growth capital to support medium-sized Japanese companies at an expansionary stage. The team aims to invest for both significant minority stakes and in small-sized control deals through management and leveraged buyouts in the range of US$5 – 50 million of equity. The team actively supports companies seeking:

- domestic and overseas expansion,

- growth opportunities through mergers and acquisitions, and

- improved corporate governance with the expertise of private equity investors, as well as

- non-core subsidiaries seeking independent operations.

The Asia Growth Capital Group manages three funds with a combined capital commitment of more than US$1 billion. The group has an active portfolio of more than 20 companies across its four key target markets and invests through 20 native professionals in six offices – Tokyo, Beijing, Shanghai, Hong Kong, Mumbai and Seoul.

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About Nakaya Microdevices Corporation
Established in 1970 by Mr. Yoshifumi Nakaya, Nakaya Microdevices Corporation has been providing high-end semiconductor assembly and testing services in Japan for more than 35 years. Since 2002, it has broadened into testing for wafers and other new products. In 2006 it completed the construction of a new factory in Usuki City, Oita Prefecture, with 54,3002 meters of floor space. This new facility has enabled the consolidation of the full spectrum of services from wafer testing, assembly, and final testing to bare chip visual inspection processes. The ability to perform all services under one roof has significantly improved Nakaya’s turn-around time, cost structure and service quality.

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