In June 2019, China’s Wingtech Group’s $26.8 billion acquisition of Nexperia of the Netherlands was approved by the CSRC, and the largest semiconductor acquisition in China’s history was officially completed. Recently, the board of directors of Nexperia completed the re-election and the corresponding changes, Wingtech Technology Chairman Zhang Xuezheng officially became chairman of AS Semiconductor.
After the acquisition was completed, Wingtech Technology has fully acquired a controlling stake in Nexperia from Beijing-based JAC Capital Asset Management, and the Chinese side has taken over the chairman ship this time, although the CEO and management team remain unchanged and are managed independently by Frans Scheper and his team.
As NXP’s Standard Products Division, Nexperia has more than 60 years of expertise in the semiconductor industry and began operating independently in early 2017.
As an integrated device manufacturer (Integrated Manufactur Device, or IDM), Nexperia has its own design, manufacturing and packaging plant, with a total production of more than 100 billion chips in 2018 and a strong presence in analog semiconductors. Its products are involved in 5G mobile communications, smart cars, Internet of Things and other popular areas with great potential for development.
In 2019, Nexperia is also the world’s first company to begin mass delivery of GaN FET, a power semiconductor product of GaN nitride GaN, becoming the only compound power semiconductor company in the industry to mass-produce delivery customers.
Wingtech Group is the world’s largest mobile phone ODM enterprises, Huawei, Xiaomi, Meizu and other companies in the low-end mobile phones are designed by Wingtech, production, Samsung exited China after it is known that more than 60 million low-end mobile phone orders will be distributed to Wingtech and other ODM companies.
Wingtech at great expense 26.8 billion yuan to win such a semiconductor company, the main reason is for the future transformation, although the world’s largest mobile phone ODM company, but Wingtech’s profitability is not high, Q1 quarter revenue of 4.89 billion yuan, an increase of 184.6% over the same period last year Net profit was RMB88.925 million, up 256.21% from a year earlier.
Taking such high-quality assets as Nexperia, Wingtech can not only gain autonomy in a variety of semiconductor chip parts, but also enter 5G, automotive electronics, Internet of Things and other markets, the development prospects are far better than a single mobile phone ODM manufacturing.