Qorvo to sell Chinese assembly, test factories to Luxshare

Business news | December 19, 2023

By Peter Clarke

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Communications and power semiconductor company Qorvo Inc. (Greensboro, North Carolina) has agreed to sell its assembly and test facilities in Beijing and Dezhou, China to Luxshare Precision Industry Co. Ltd. Qorvo will continue to be served through legacy contracts.

The financial terms of the deal were not disclosed.

Luxshare will acquire each facility’s assets, operations and workforce and will assemble and test products for Qorvo under a long-term supply agreement. The Beijing and Dezhou facilities primarily support Qorvo’s highly-integrated advanced cellular products. Qorvo said it will continue to maintain its sales, engineering and customer support employees in China to continue serving customers.

The Qorvo deal is expected to complete in the 1H24 subject to regulatory approvals and the satisfaction or waiver of other closing conditions.

Luxshare is electronic manufacturing services company in the style of Foxconn that has grabbed contracts in the Apple supply chain. It reportedly is an assembler of iPhones and AirPods and as of July 2023 was the initial and only contract manufacturer for Apple’s Vision Pro virtual reality headset.

Bob Bruggeworth, CEO of Qorvo, said: “The Beijing and Dezhou facilities have been an important part of our history and manufacturing network for decades. After carefully considering multiple alternatives over the past few years, we feel that we have found the right partner to continue supporting our customers from these factories. Given Luxshare’s scale and well-established, high volume manufacturing competency, we are confident that they will ensure continuity, maintain high levels of quality, and be another outstanding strategic partner in our supply chain that allows us to serve our customers worldwide.”

After the close Qorvo will continue to have assembly, packaging and test facilities in the US, Costa Rica, and Germany, as well as using outsourced semiconductor assembly and test (OSAT) partners.