Connectivity and power solutions provider Qorvo and contract manufacturer Luxshare Precision Industry Co., Ltd. have forged a definitive agreement. Particularly, Luxshare will acquire Qorvo’s assembly and test facilities in Beijing and Dezhou in China.

The companies anticipate completing the transaction by the first half of calendar 2024. Upon closing, Luxshare will acquire each facility’s operations and assets. Specifically, this will include the property, plant, and equipment, as well as the existing workforce. Thus, enabling seamless continuity of operations.

Meanwhile, Qorvo will continue maintaining its sales, engineering, and customer support employees in China to continue serving customers.

High-Volume Manufacturing Competency

Following the close of the transaction, Luxshare will assemble and test products for Qorvo under a newly established long-term supply agreement. Moreover, the Beijing and Dezhou facilities primarily support Qorvo’s highly integrated advanced cellular products. Luxshare is one of the industry’s major suppliers to many of the world’s leading electronics companies. Moreover, it will provide seamless and flexible access to best-in-class production capacity while expanding its offerings and capabilities.

Bob Bruggeworth, president and chief executive officer 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.”

In addition, Bruggeworth said Luxshare’s scale and well-established, high-volume manufacturing competency will ensure continuity and maintain high levels of quality. Thus, making the company an outstanding strategic partner in Qorvo’s supply chain.

On the other hand, Grant Brown, chief financial officer of Qorvo, said, “This transaction furthers our efforts to reduce capital intensity. (Moreover), while supporting our long-term gross margin objectives and ensuring continuity for our customers in China.”

The Beijing and Dezhou facilities will continue to operate as part of Qorvo’s global manufacturing network until the closing of the transaction. After the closing, Qorvo’s assembly, packaging, and test network will continue to include its facilities in the United States, Costa Rica, and Germany, as well as valued leading global outsourced semiconductor assembly and test (OSAT) partners.