Wingtech sells assembly assets to Luxshare for 4.6 billion yuan

Wingtech has agreed to sell its assembly assets to Luxshare Precision Industry for 4.6 billion yuan, which is about 635 million US dollars. The company made this announcement in a filing with the Shanghai Stock Exchange on Thursday. The deal includes Wingtech's stakes in five subsidiaries and involves divesting assets from three additional units. This sale marks Wingtech’s complete exit from the product assembly market. The company plans to focus solely on its semiconductor operations going forward. This shift comes after a thorough evaluation of the geopolitical situation and the company’s growth plans. Wingtech, which is based in Jiaxing, Zhejiang, was placed on the US Commerce Department’s entity list in December 2022. This action, taken by the Biden administration, indicates that Wingtech is considered a risk to US national security. As a result, Wingtech's assembly business has faced challenges, including difficulties in procurement, research and development, and sales. The company stated it has been struggling to secure new project orders and has even lost some existing ones.