Taiwan's Powertech Technology said on Friday it has signed a deal to acquire a 39.6 percent stake in Japan's Tera Probe from US memory chipmaker Micron Technology and the entire stake of Micron-owned Micron Akita Inc.

"Powertech is pleased to take this opportunity to expand its business operation in the Japan region. Micron Akita has great facilities and a talented team with solid assembly and testing capabilities," Powertech CEO and Chairman D. K. Tsai said.

When combined with its holding, the $132 million deal will give the world's leading provider of semiconductor chip backend services majority control of at least 51. 2 percent. Powertech will pay 1,100 yen ($10.12) per share in a public tender offer for the remaining stocks of the firm between the next Monday and May 29, according to China Post. It also plans to elect new board members in June.

Tsai also revealed that the company plans to expand its production capacity, particularly for automotive IC and internet of things products in Akita to boost momentum for revenue growth. He added that the acquisition aims to bring in $131.6 million in the coming years.

"Although the Japanese semiconductor industry has declined, they still have a leading edge in vehicle electronics, Internet of things (IoT) and other areas," Tsai said. "Power tech has been hoping to build a full turn-key solution in Japan."

The deals are still subject to the approval of Taiwan regulators.

Meanwhile, Powertech is one of the three firms that China's Tsinghua Unigroup has sought to buy stakes in 2016, but it was blocked by Taiwanese regulators earlier this year. China has gone on an overseas shopping spree as it aims to enhance its domestic semiconductor market. China is eyeing a national self-sufficiency rate for ICs at 70 percent in 2025.