Wistron Corp. held a Board of Directors Meeting today and approved to sell Wistron InfoComm Manufacturing (Kunshan) Co., Ltd, Wistron Investment (Jiangsu) Co., Ltd, and related businesses to Luxshare Group. The transaction value is tentatively set as RMB3.3 billion [US$472m]… Post the transaction, the company will be more aggressive to invest in and develop future technologies while targeting new business areas such as 5G, artificial intelligence (AI), automotive, and health care to further enhance its product portfolio and profitability.
(CTimes (Global Electronics in Taiwan), July 17)
Brady Wang's key takeaways:
- The estimated completion of this deal is the end of this year. This means Luxshare has less chance to be the EMS for iPhone 12 in 2020.
- However, Luxshare will enter into the iPhone assembly business and start from old models.
- In order to mitigate the impact of tariff imposed by the US on the trade war between the US and China, it's expected to see more factories moving out of China to Vietnam or India.
- Due to the increased cost of smartphones but the difficulty in increasing their selling price, the margins for iPhone assembly are getting lower and lower.