Amid geopolitical tensions and being placed on the US target list, Nexperia’s Chinese parent Wingtech plans to half its business and focus on semiconductor production.
Wingtech, the Chinese parent company behind European chipmaker Nexperia, has announced plans to sell about half of its business and refocus on semiconductor production following significant geopolitical shifts.
The company intends to divest its product integration division, encompassing the contract manufacturing of smartphones, home appliances, and various electronics. In doing so, Wingtech aims to concentrate on the semiconductor sector.
The move comes right after the company was placed on the US government’s ‘entity’ list, which targets the firms deemed to be assisting China’s efforts to acquire sensitive chipmaking technology.
Wingtech’s recent filing with the Shanghai Stock Exchange, which contained this decision, did not disclose the financial details of the proposed transaction. However, it confirmed that the assets to be sold represent around half of the company’s total business and generate between 50% and 60% of its revenues.
The buyer is identified as Luxshare Ltd., a Hong Kong-based company with a controlling stake in Luxshare Precision Industry, a supplier to Apple.
The decision to restructure the business reflects ongoing tensions in the technology sector, with the US government closely monitoring Chinese firms involved in the semiconductor industry.
Wingtech will focus on strengthening its semiconductor capabilities in an increasingly competitive global market.
