Wingtech sells off manufacturing to focus on power semiconductors

Wingtech, one of the leading contract manufacturers in China, has signed a deal to transfer the equity and operating assets of the majority of its manufacturing subsidiaries to Luxshare Precision Industry.

The move would allow Wingtech, which owns Nexperia in the Netherlands, to focus on its semiconductor business, it told investors over the Christmas period. Nexperia has ambitious plans for growth, funded by Wingtech.

The cash deal is a coup for Luxshare, which is one of Apple’s most significant suppliers in the region. Luxshare has been producing essential Apple products for years, ranging from components to whole assemblies, such as AirPods and AirPods Pro, as well as supplying and assembling Mac computers.

This time last year, Qorvo announced the sale of assembly and test plants to Luxshare, and the nine subsidiaries in the Wingtech deal will further boost the company’s capacity to take on Foxconn.

Alongside a recent $200m investment in semiconductor capacity at Nexperia, Wingtech has also invested US$1.6bn in a 300mm power fab in Lingang, Shanghai, with a capacity of 120,000 wafers per month. However Western governments consider the company has connections to the Chinese government, raising security concerns.