US chip maker Qorvo to sell Chinese plants to iPhone assembler Luxshare in latest supply chain shift
- Luxshare will take over the operations and assets, including the equipment and existing workforce, while Qorvo will maintain a customer support team in China
- The sale represents the latest example of changing global supply chains as American tech companies are cutting reliance on China-based production facilities
US wireless connectivity chip company Qorvo has decided to sell two of its factories in China to a local company in the latest case of American tech firms scaling down their operations in the country.
Luxshare will take over the operations and assets, including the property, plant, equipment and existing workforce. Qorvo will maintain its teams of sales, engineering and customer support in China to continue serving customers, the company said. It did not specify the financial terms.
The factories sold to Luxshare primarily handle Qorvo’s advanced mobile phone products. Upon completion of the deal, expected in the first half of 2024, the two companies will enter into a long-term supply agreement under which Luxshare will assemble and test those products for the US chip firm.
The sale represents the latest example of changing global supply chains, as American tech companies are cutting reliance on China-based production facilities.
Established almost two decades ago as a computer cable assembler in China’s southern Dongguan city, Luxshare has grown to become a key part of Apple’s China manufacturing supply chain, tapped by the US firm to make more of its consumer electronics products.