Qorvo Forms a Strategic Partnership With Luxshare

GREENSBORO, N.C., Dec. 18, 2023 (GLOBE NEWSWIRE) --  Qorvo (Nasdaq: QRVO), a leading global provider of connectivity and power solutions, today announced that it has reached a definitive agreement with Luxshare Precision Industry Co., Ltd. (“Luxshare, 002475.SZ”), a global advanced contract manufacturer, under which Luxshare will acquire Qorvo’s assembly and test facilities in Beijing and Dezhou, China.

The companies anticipate completing the transaction by the first half of calendar 2024, subject to receipt of regulatory approvals and the satisfaction or waiver of other closing conditions. Upon closing, Luxshare will acquire each facility’s operations and assets, which include the property, plant and equipment, as well as the existing workforce, to enable seamless continuity of operations. Qorvo will continue to maintain its sales, engineering and customer support employees in China to continue serving customers.

Following the close of the transaction, Luxshare will assemble and test products for Qorvo under a newly established long-term supply agreement. The Beijing and Dezhou facilities primarily support Qorvo’s highly integrated advanced cellular products. Luxshare is a trusted supplier to many of the world’s leading electronics companies and 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. Given Luxshare’s scale and well-established, high volume manufacturing competency, we are confident that they will ensure continuity, maintain high levels of quality, and be another outstanding strategic partner in our supply chain that allows us to serve our customers worldwide.”

Grant Brown, chief financial officer of Qorvo, said, “This transaction furthers our efforts to reduce capital intensity 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.