In recent years, Wingtech has been steadily expanding its footprint in Apple’s supply chain. However, with the US blacklisting the company, it has had to abandon its ambitions with the “bitten apple”.

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Wingtech agrees to sell 9 branches to Luxshare. Photo: Shutterstock

Wingtech said it will sell its non-semiconductor assets to Luxshare, a major iPhone assembler. The deal marks the first time a Chinese supplier has built a full suite of Apple products, including smartphones, wearables, computers and other devices. It is also Luxshare’s first access to Samsung’s smartphone production lines.

In a filing to the Shenzhen Stock Exchange on December 31, Wingtech announced that it had signed a letter of intent with Luxshare to sell nine branches, factories and businesses. The move is in response to “ geopolitical changes” and the need for future development.

Wingtech was among 140 Chinese entities added to the US trade blacklist a few weeks ago. Wingtech is the second Apple supplier to be named, following iPhone camera module maker O-Film Tech.

A supply chain executive commented that Luxshare was the best and fastest solution for Wingtech because it had experience in manufacturing sophisticated products like the iPhone. It helped minimize disruption to Apple's supply chain.

Wingtech owns chip maker Nexperia. The company will consolidate and focus on its chip-related business to secure and enhance its position in the global semiconductor market.

Although the transaction amount was not disclosed, revenue from the nine branches accounted for more than 50% of Wingtech's total revenue in the third quarter of 2024. Wingtech was founded in 2006. In addition to manufacturing Samsung phones, the company has also increased its presence in Apple's supply chain.

Wingtech acquired camera module factories from O-Film in 2021 and then won MacBook, iPad orders.

The company is building a large manufacturing facility for Apple in Yunnan by 2022.

According to Nikkei sources, in 2024, the company will manufacture about 2.5 to 3 million MacBooks.

(According to Nikkei)