Wingtech sells key assets to Luxshare, shifts focus to semiconductors
Wingtech Technology Co., Ltd. has announced plans to divest major assets in a strategic move to exit the product integration business (its ODM business) and focus on semiconductors. The company disclosed the proposed transaction in a filing with the Shanghai Stock Exchange.
Wingtech has disclosed a significant move involving the sale of its major business assets to Luxshare Precision Industry as part of a strategic transformation. The decision, made in light of changing market conditions, includes the sale of 100% equity in several subsidiaries and related business assets, aimed at re-focusing Wingtech's attention to its semiconductor operations.
In a filing with the Shanghai Stock Exchange, Wingtech outlined that it will divest its product integration business, including Kunming Wenxun, Huangshi Wentai, Kunming Wenyuan, Shenzhen Wentai, Hong Kong Wentai (and its operations in Indonesia), as well as certain business assets in Wuxi and India.
This decision follows substantial shifts in global trade and geopolitical landscapes, notably after the company’s addition to the US Entity List in December 2024.
As part of the agreement, Luxshare Precision will acquire the business units involved in manufacturing consumer electronics. The asset transfer will allow Luxshare to expand its capabilities in the consumer electronics market. The financial details, including the final transaction value, are yet to be fully determined, pending audit and valuation reports.
The move is expected to optimise Wingtech’s resource allocation, allowing the company to intensify its focus on the high-growth semiconductor industry. Wingtech plans to channel its resources into strengthening its leadership in power semiconductor technologies, particularly in areas like small-signal diodes and power MOSFETs.
The deal is still subject to various approvals, including the completion of financial audits and regulatory clearances.
