Wingtech to Sell Assembly Assets Worth 4.6 Billion Yuan to Luxshare

Strategic Exit Following US Restrictions

Wingtech Technology, a key electronics manufacturer based in Jiaxing, China, has announced plans to divest its product assembly operations by selling stakes in five of its subsidiaries to Luxshare Precision Industry. According to a recent filing with the Shanghai Stock Exchange, three other subsidiaries will also see asset sales as part of the transaction. The deal, valued at approximately 4.6 billion yuan (around USD 635 million), marks a significant shift in Wingtech’s operational focus.

The decision comes after the company was added to the US Department of Commerce’s Entity List in December, a designation that restricts American companies from doing business with listed firms due to national security concerns. This move had a direct impact on Wingtech’s procurement, research and development, and sales operations. In its filing, the company stated that the sanctions led to “difficulties in securing new project orders and the loss of existing project orders.”

Refocusing on Semiconductor Operations

With this divestment, Wingtech will fully exit the assembly business and redirect its resources toward semiconductor development. In its public statement, the company said it reached this decision after an “in-depth assessment of the geopolitical environment and business development.” By concentrating on semiconductors, Wingtech aims to strengthen its position in a field considered less vulnerable to international trade restrictions.

The firm has been expanding its semiconductor footprint in recent years, acquiring companies and investing in chip production capabilities. Industry analysts see this transition as part of a broader trend among Chinese tech companies to insulate themselves from geopolitical tensions by prioritizing sectors with domestic strategic importance.

Opportunity for Luxshare’s Expansion

For Luxshare Precision Industry, the acquisition offers a timely opportunity to scale its manufacturing capabilities. The company is a major assembler for Apple and other global brands, and the new assets are expected to boost its competitiveness in a volatile supply chain environment.

As global technology firms adapt to increasing regulatory scrutiny and shifting supply routes, the Wingtech-Luxshare deal reflects how companies are recalibrating their strategies. While Wingtech retreats from one segment, it aims to fortify its standing in another — underscoring how external pressures continue to reshape the landscape for Chinese electronics manufacturers.