Yesterday, China Wingtech Communications announced that it intends to increase the capital of the shareholding subsidiary Hefei Zhong Wen Jin Tai Semiconductor Investment Co., Ltd. by RMB 5,852.5 million, gaining the latter’s controlling interest and holding Nexperia in an indirect manner.
In 2016, the Chinese consortium signed a contract with NXP of the Netherlands to acquire the latter’s spin-off of discrete devices, logic devices and MOSFET devices for $2.76 billion, which was later placed in Nexperia B.V. In February 2017, Nexperia Holding, a consortium formed by the Chinese consortium, completed the acquisition of Nexperia B.V.
Wingtech is in the middle of the industry chain, providing intelligent hardware R&D and intelligent manufacturing services to the world’s leading electronic brand customers. It is the largest ODM company with the largest mobile phone shipments in the world, with a market share of over 10%. If it can obtain the control of Nexperia in the future, it will have synergistic effects in many aspects such as customers, technology and products. The two parties can realize the mutual conversion of resources in the integration process, accelerate the development and landing of Nexperia’s business in the Chinese market, and further expand The market in the consumer electronics sector.