Luxshare Precision Industry announced on March 20 that it will acquire core assets from Wingtech Technology's consumer electronics system integration unit. The all-cash deal, executed via its subsidiary Luxshare Communication, aligns with Luxshare's broader strategy to expand global operations and enhance vertical integration in the electronics manufacturing ecosystem.
Acquisition spans China, Southeast Asia, and India
As reported by Sina and East Money, the CNY4.6 billion (approx. US$634.34 million) transaction covers equity stakes in eight Wingtech subsidiaries, including Kunming Wenxun, Huangshi Wingtech, Shenzhen Wingtech, Wuxi Wingtech, and international operations in Hong Kong, Indonesia, and India.
Wingtech clarified that the divested assets include businesses tied to both "A customers" and non-A customers, with Apple identified as the "A customer." Given Luxshare's role as a key Apple supplier, Wingtech sees the buyer's precision manufacturing capabilities as complementary—potentially reinforcing supply chain efficiency and competitiveness across China's electronics sector.
Wingtech has been under escalating strain since its addition to the US Department of Commerce's Entity List in December 2024. The designation disrupted order flows and project execution, prompting the company to consider divestiture as a necessary step to avoid revenue collapse. Export restrictions have created ripple effects across its supply and customer base, hindering procurement, development, and sales activities.
Apple business hit hard as Wingtech faces order cancellations
Bloomberg reported that Wingtech joined Apple's supply chain in 2022. Apple's latest supplier list confirms Wingtech's facilities in Guangdong, Yunnan, and Zhejiang as part of its production base.
In a separate Shanghai Stock Exchange filing, Wingtech revealed it had secured an order for 2.27 million notebook units—worth CNY14.5 billion—from its "A customer" before being added to the Entity List. The order was canceled in late January.
"For our 'A' customer business, the client has adopted a stricter interpretation of US Entity List regulations," Wingtech stated. "Since December 2024, it has phased out older products and withheld new orders—even for projects already in pre-production. Despite multiple rounds of negotiation, the client formally canceled the new production plan in January 2025."
Wingtech to exit ODM business and fully pivot to semiconductors
Wingtech confirmed it will exit its ODM and EMS businesses entirely as part of a strategic pivot toward semiconductors. The shift aims to streamline its operations and reallocate resources toward higher-margin, less geopolitically exposed sectors.
Wingtech's filings show its system integration business generated CNY44.3 billion in 2023 and an unaudited CNY58.6 billion in 2024, representing over 70% of total revenue in both years.
Faced with mounting trade and policy uncertainty, Wingtech said it will shift resources to its semiconductor division, now positioned as the company's strategic core.
Wingtech runs an integrated device manufacturing (IDM) model covering chip design, wafer production, and packaging. Its semiconductors serve automotive, industrial, and consumer electronics markets.
Wingtech stated that about 90% of its chips meet automotive-grade standards and are supplied to leading Tier 1 automotive suppliers and global automakers, reinforcing its position in the top tier of the power semiconductor industry.
Luxshare expands global reach and diversifies customer portfolio
The acquisition boosts Luxshare's system integration capabilities and deepens relationships with current clients. It also supports efforts to diversify beyond Apple, which accounted for an estimated CNY174.4 billion—75% of Luxshare's revenue—in 2023.
China Post Securities noted that Luxshare frequently acquires businesses offering either similar products in new regions or complementary products in existing ones—a strategy that accelerates growth while avoiding greenfield risk. The Wingtech deal follows this proven M&A model.
This marks the second deal between the two companies. In January 2024, Luxshare acquired three Wingtech subsidiaries—Jiaxing Yongrui, Shanghai Wingtech Electronics, and Shanghai Wingtech Information Technology—for CNY616 million. The deal closed in under two months, highlighting Luxshare's rapid M&A execution.
The deal allows Wingtech to exit a politically sensitive segment and sharpen its semiconductor focus, while Luxshare advances its role in global electronics manufacturing. A successful integration could mark the beginning of a broader realignment in China's electronics supply chain.
Article edited by Jack Wu
