ams, the sensing component supplier of Apple, announced that it will establish a joint venture with Wise Road Capital, a global Private Equity firm focusing on the semiconductor industry and other emerging high-tech industries.

The two companies have signed an agreement to create a joint venture to advance the development and sales of environmental, flow and pressure sensor solutions for the global market. Under the agreement, employees, IP, sensor products and solutions and related customers will transfer from ams to the joint venture, while Wise Road Capital will provide its expert joint venture guidance, deep market knowledge and strength in channel and customer relationships, especially in China.

Tepid sale of the latest iPhone has led to a profit drop in 4Q18 for ams, as it supplies sensing components for iPhone’s face recognition, reported Reuters. The company thus decided to reduce its focus on environment sensors and will transfer its current environmental sensor solution portfolio to the joint venture.

Environmental sensors cover air quality, relative humidity and temperature sensing, for applications in automotive, smart building and air quality monitoring infrastructure. Also, ams will also move its ultrasound-based flow sensor solutions to the new company.

Meanwhile, Wise Road Capital in turn will offer its experiences in the Chinese market and open up its extensive network and resources from well-known global industry partners.

The new company, which will be headquartered in the Netherlands, will be led by Stefan Raible who will serve as Managing Director. Stefan is currently General Manager of the Environmental Sensors business at ams and was the former CEO of Applied Sensors, which was acquired by ams in 2014. The agreement encompasses an investment valuing the joint venture business at approximately $US 120 million and is expected to conclude in fall 2019.