News: Microelectronics
22 December 2023
Qorvo sells Beijing and Dezhou assembly & test facilities to contract manufacturer Luxshare
Qorvo Inc of Greensboro, NC, USA (which provides core technologies and RF solutions for mobile, infrastructure and defense applications) has reached a definitive agreement for global contract manufacturer Luxshare Precision Industry Co Ltd of Dongguan City, Guangdong, China to acquire its assembly & test facilities in Beijing and Dezhou.
The companies anticipate completing the transaction by first-half 2024, subject to receipt of regulatory approvals and the satisfaction or waiver of other closing conditions. Upon closing, Luxshare will acquire each facility’s operations and assets, which include the property, plant and equipment, as well as the existing workforce, to enable seamless continuity of operations. Qorvo will continue to maintain its sales, engineering and customer support employees in China to continue serving customers.
Following the close of the transaction, Luxshare will assemble and test products for Qorvo under a newly established long-term supply agreement. The Beijing and Dezhou facilities primarily support Qorvo’s highly integrated advanced cellular products. Luxshare is described as a trusted supplier to many of the world’s leading electronics companies and will provide flexible access to production capacity while expanding its offerings and capabilities.
“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,” says Qorvo’s president & CEO Bob Bruggeworth. “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,” he adds.
“This transaction furthers our efforts to reduce capital intensity while supporting our long-term gross margin objectives and ensuring continuity for our customers in China,” says Qorvo’s chief financial officer Grant Brown.
The Beijing and Dezhou facilities will continue to operate as part of Qorvo’s global manufacturing network until the closing of the transaction. After the closing, Qorvo’s assembly, packaging and test network will continue to include its facilities in the USA, Costa Rica and Germany, as well as global outsourced semiconductor assembly & test (OSAT) partners.
