AMSTERDAM (Reuters) – Wingtech, the Chinese firm that owns European computer chip maker Nexperia, intends to sell roughly half of its business and focus more on chipmaking due to “changes in the geopolitical environment”, it said in a filing this week.
The move comes less than a month after the firm was added to the U.S. government’s “entity” list as an investor the U.S. views as aiding Chinese government efforts to acquire sensitive chipmaking technology.
However, Wingtech plans to sell its “product integration” business, which includes contract manufacturing of smartphones, home appliances and other electronics, and to double down on chipmaking, it said.
“After completion of this transaction, the company will concentrate resources on the semiconductor business, (and) strengthen and enhance its position as a leading global power semiconductor company,” it said.
No price was given for the proposed transaction in the filing with the Shanghai Stock Exchange. The buyer, Luxshare Ltd. of Hong Kong, is the controlling shareholder of Luxshare Precision Industry Co., an Apple supplier.
The filing said that the assets to be transferred make up no more than half of its total, and account for 50% to 60% of revenues.
Nexperia, which said in December it does not expect the U.S. entity listing to impact its operations, could not immediately be reached for comment.
Wingtech bought Nexperia in 2019.
(Writing by Toby Sterling; Editing by Hugh Lawson)
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