Oorvo sells two Chinese factories to Luxshare
US wireless connectivity chip company Qorvo has offloaded two of its Chinese assembly and test facilities to a local company.
Qorvo has announced that Luxshare Precision Industry Co will acquire the property, plant and equipment of its plants in Beijing and Dezhou. However, Qorvo will continue to maintain its sales, engineering and customer support for local customers.
The companies anticipate completing the transaction by 1H 2024, subject to regulatory approvals. The sale represents another example of American tech companies reducing their reliance on China-based production facilities in the light of export restrictions.
Qorvo specialises in RF and power semiconductor solutions that serve markets including consumer electronics, smart home/IoT, automotive, EVs, battery-powered appliances, network infrastructure, and aerospace/defence. Meanwhile Luxshare manufactures cable assembly and connector systems for consumer, automotive, cloud, and enterprise applications. Both companies work closely with Apple.
Bob Bruggeworth, CEO of Qorvo, said, “The Beijing and Dezhou facilities have been an important part of our history and manufacturing network for decades. After carefully considering multiple alternatives over the past few years, we feel that we have found the right partner to continue supporting our customers from these factories. Given Luxshare’s scale and well-established, high volume manufacturing competency, we are confident that they will ensure continuity, maintain high levels of quality, and be another outstanding strategic partner in our supply chain that allows us to serve our customers worldwide.”
The two companies anticipate completing the transaction by 1H 2024, subject to regulatory approvals.
