This article will take you 1 minute(s) to read
As per latest reports, Wingtech Technology Co Ltd, the world’s largest smartphone contract manufacturer is planning to acquire Dutch semiconductor firm Nexperia Holding for 25.2 billion yuan ($3.63 billion). China-based Wingtech is a contract manufacturer for the country’s largest smartphone companies including Huawei Technologies and Xiaomi Corps.
The company in a stock exchange filing said that it plans to pay 18.45 billion yuan to buy stakes from existing owners of Nexperia. With this move, Wingtech will indirectly acquire 75.86 per cent of Nexperia as a result of the deals. It’s worth mentioning that, the company announced that it will spend 6.7 billion yuan to acquire another owner of Nexperia as well.
Nexperia, based out of the Netherlands was formerly the product’s unit of NXP Semiconductors. They are the component supplier in the semiconductor industry with some tech giants including Apple Inc and Samsung Electronics as clients.
Moreover, the report also said that the acquisition will value Nexperia at 35.1 billion yuan, which is around one and half times the US$2.1 billion, a consortium of Chinese buyers paid for it in 2016.
With this deal, the company is planning to get into automotive electronics, which is Nexperia’s largest business, as it tries to benefit from business demand from more sectors in the 5G era. Earlier this year, Chinese regulators stopped Qualcomm’s US$44 billion deal to buy NXP due to intensifying trade tensions between China and the US.
Stay tuned to Silicon Canals for more updates in the tech startup world.