In the rapid development of science and technology, a piece of news is like a shock, which has aroused widespread attention in the global semiconductor industry. U.S. RF chip maker Qorvo announced that its two factories in China will be given to China's local assembly foundry giant Luxshare Precision Industries
It was a handshake across the ocean and another important milestone in the rise of China's scientific and technological power. As early as 2015, RFMD, the predecessor of Weixun, had already established its first factory in Beijing, covering an area of 30,31667 square meters. However, with the rapid development of the business and the surge in market demand, a single Beijing factory can no longer meet the supply demand of a large number of RF devices. As a result, Weixun established a second factory in Texas, covering an area of 46,91614 square meters.
The Texas plant, which was officially put into operation in the second half of 2016, is the largest market move since the merger. It not only carries the essence of Weixun's technology, but also becomes the world's largest module assembly, packaging and testing center of Weixun. Bob Bruggeworth, CEO of Weixun, once revealed in an interview with **: "In the world, we only have two packaging and testing factories in Beijing and Dezhou, Shandong, and 85% and 90% of Weixun products are tested in China. ”
However, the wheels of the times are rolling forward, and the competition in the field of technology is becoming increasingly fierce. Although Weixun, as the main supplier of Apple's iPhone RF chips, benefits from China's strong demand for iPhone, in the face of the rise of China's local enterprises and changes in the international situation, Weixun has made a major decision - to give its Chinese factory to Luxshare Precision.
Lixun Precision, a well-known enterprise in the field of consumer electronics in China, has successfully entered the Apple chain through a series of acquisitions and expansions since its listing on the Shenzhen Stock Exchange in 2010, and has gradually developed into a "brother of the fruit chain" from the initial iPad cable order. However, in the face of long-term stagnation of stock prices and market risks, Lixun Precision knows that it must find new growth points.
The automotive electronics business has become a new target for Lixun Precision. Although the proportion of revenue of this business has remained below 5% all year round, the market view generally believes that this will be an important business growth point for Luxshare Precision in the future. Lixun Precision said in an investor survey: "The value of the complex wiring harness of the SmartEV delivered this year is more than 10,000 yuan. The value of all products is about 3-40,000 yuan. If Luxshare Precision can support 15 million vehicles on a global scale, the company's related products will reach a scale of about 200 billion. ”
However, the automotive industry has extremely high requirements for product safety, and the certification process is complex and the cycle is long, which makes the stickiness of vehicle manufacturers to Tier1 suppliers high, and it is extremely difficult for new manufacturers to enter the first chain. However, Lixun Precision has not been deterred by this, but has taken a more determined step towards the blue ocean of automotive electronics.
The acquisition of two factories in Luxshare China is undoubtedly an important step in the strategic layout of Luxshare Precision. According to the definitive agreement reached between the two parties, Luxshare Precision will take over the operations, assets and employees of the two factories to ensure seamless continuity of operations. Wixun will continue to retain its sales, engineering and customer support operations in China, and has signed a long-term** agreement with Luxshare Precision to provide assembly and testing services for its products.
Grant Brown, Chief Financial Officer of Vixun, commented: "This transaction will enable Vixun to further reduce capital intensity, achieve long-term gross margin targets, and provide better and uninterrupted service to our customers in China. Luxshare Precision also looks forward to improving its manufacturing capabilities and technical strength through this acquisition, and laying a solid foundation for the future automotive electronics business.
The transaction is expected to close in the first half of 2024, at which point the Beijing and Texas facilities will continue to operate as part of its global manufacturing network until the transaction closes. Upon completion of the transaction, Vixun's assembly, assembly, and test network will continue to include its facilities in the United States, Costa Rica, and Germany, as well as key global leading outsourced semiconductor assembly and test partners.
Luxshare Precision's acquisition of two factories in Weixun China is not only a recognition of China's manufacturing strength, but also a manifestation of confidence in China's technology in the future. We have reason to believe that as Chinese enterprises continue to improve their technological research and development and innovation capabilities, there will be more "created in China" in the semiconductor industry to the world stage in the future.
I'm a tech creator