However, Viking Tech said in a statement that there is no time frame set for the offer, because Guangdong Fenghua needs to obtain regulatory approval from Taiwan and China before it can start the planned share purchase.

Fenghua Advanced Technology is the biggest passive components provider that has product lines in thick film resistor, electric capacity and inductor. Nevertheless, after the integration with Viking Tech, the company is going to get the advanced thin-film resistor technology and capacity. And it will benefit the company to penetrate Europe and American markets.

The passive component, depending on field, may either refer to a component that consumes energy, or to a component that is incapable of power gain. Otherwise, a component that is not passive is called an active component.

Moreover, an electronic circuit consisting entirely of passive components is called a passive circuit. Due to every electronic product has got to carry passive components, it has been called as the rice of the electronic product. Taiwanese firms are in the leading status in terms of resistor industry, which has the 70 percent of the market share.