Qorvo, a leading global provider of connectivity and power solutions, recently announced a strategic, mutually beneficial partnership with Luxshare Precision, the world's leading leading contract manufacturer. The collaboration involves the transfer of Qorvo's assembly and test facilities in Beijing and Texas, China, to Luxshare Precision.
The agreement, which is due to be completed in the first half of 2024 and is currently awaiting regulatory approval, is a significant milestone for both companies. Luxshare Precision will not only acquire the operations and assets of these facilities, but will also retain the existing workforce to ensure a seamless transition and continuous delivery of high-quality products.
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Upon completion of the transaction, Luxshare will be responsible for assembling and testing the products for Qorvo under a new long-term** agreement. The Beijing and Texas facilities are critical to supporting Qorvo's advanced cellular products and will benefit from Luxshare Precision's extensive experience as a trusted supplier to some of the world's leading electronics companies. Luxshare Precision's commitment to providing top-of-the-line manufacturing capabilities aligns perfectly with Qorvo's commitment to maintaining quality and meeting the needs of its global customer base.
Bob Bruggeworth, president and CEO of Qorvo, is confident in the partnership, saying that after carefully considering multiple alternatives over the past few years, he has finally found the right partner to continue supporting customers at these sites. The scale and perfect mass manufacturing capabilities of Lixun Precision have become an outstanding strategic partner in the first chain.
Qorvo CFO Grant Brown highlighted the positive impact of the transaction, which furthers the company's efforts to reduce capital intensity while supporting the company's long-term gross margin goals and ensuring customer continuity in China.