VIENNA (Reuters) - AMS AG, which supplies Apple (NASDAQ:AAPL) with sensors for its Face ID technology, said it will set up a joint venture with private equity fund Wise Road Capital to develop its environmental, flow and pressure sensors for the Chinese market.
The Austrian company has suffered from slow demand for the latest iPhones in recent months and after a strategic review, decided to reduce its focus on environmental sensors, which detect temperature or moisture, and has moved staffed from that unit to other projects.
AMS will transfer employees and sensor products to the joint venture that will be headquartered in the Netherlands, while Wise Road Capital will provide market knowledge and its customer relationships in China, AMS said.
The agreement valued the joint venture at approximately $120 million.
"This new JV will have a dedicated team focusing on further advancing and developing AMS' award-winning environmental, flow and pressure sensor solutions for which we see the largest market opportunity in China," said Chris Feige, Executive Vice President at AMS AG.
Stefan Raible, currently general manager of AMS's environmental sensors business, will head the JV.