Wistron’s iPhone production plant finds new owner
The EMS giant announced its intentions to sell two of its Chinese subsidiaries in a filling with the Taiwan Stock Exchange on July 17.
In the filling, the company says that it will sell 100% of the ownership of Wistron InfoComm Manufacturing (Kunshan) and Wistron Investment (Jiangsu) to Chinese manufacturing rival, Luxshare Group. The move is described to be part of the strategic planning of Wistron. The sale of the Kunshan- and Jiangsu plant, as well as related businesses to Luxshare Group has a tentative value of RMB 3.3 billion (about EUR 412 million), according to the filling. However, the final transaction value will be adjusted based on the actual book value on the business transfer day. The acquisition of these subsidiaries will allow Luxshare to gain control of one of Wistron's key assembly plant in Kushan in China's Jiangsu province. The to be acquired Kunshan plant focuses on smartphone assembly – and of course iPhone assebly. China-based Luxshare is already a supplier of acoustics components, motors, connectors and cables for the iPhone – as pointed out by the Taipei Times – but there has been rumors about the company trying to expand into the iPhone assembly business now for some time – this would be a major step towards that. And as Luxshare gains control of a Chinese iPhone assembly plant, it is suggested that Wistron plans to move a majority of its iPhone production to India, as reported by Reuters back in February. The deal between Wistron and Luxshare will proceed to obtain the relevant authority approvals as required, with an estimated completion by the end of this year. Moving forward, Wistron says in the filling that it will continue to focus on optimising its business portfolio and global footprint to “cope with an ever-changing environment.” “Post the transaction, the company will be more aggressive to invest in and develop future technologies while targeting new business areas such as 5G, artificial intelligence (AI), automotive, and health care to further enhance its product portfolio and profitability. Moreover, to meet the rapid change of customer needs, Wistron will not only make more investments in our headquarters in Taiwan, but also continue developing the manufacturing capacities based in Mexico, India, Malaysia, Vietnam, the Czech Republic, and mainland China,” the filling reads.