Vigantec Technology, a company that supplies parts to big smartphone companies like Apple, Samsung and Xiaomi, is selling its business. Wingtech said that it will focus on semiconductor business by selling its consumer electronics manufacturing business to Apple’s supplier company Luxshare. Let us tell you that last month America had put Wingtech in the trade blacklist. The company had also mentioned this among the reasons for selling its business. Being blacklisted will affect the company’s business.
The company gave these reasons
The company said that in view of the changing geopolitical environment and the needs of the company, it is selling the business. The company has decided to sell its 9 subsidiaries engaged in the production of laptops, smartphones and tablets to Luxshare. Now it will focus only on making semiconductors. The cost of the deal has not been revealed yet. Wingtech has said that the cost will be determined after all the legal proceedings are completed.
Wingtech was China’s largest contract manufacturer
Founded in 2006, Wingtech was China’s largest contract manufacturer and the world’s third largest smartphone original design maker in 2023. In 2023, the company’s smartphone shipments increased by 7 percent due to the orders received from Xiaomi, Samsung and Honor. The company was planning to expand its business in the field of AI smartphones and computers abroad.
America blacklists 140 Chinese companies
The US Commerce Department had blacklisted 140 Chinese companies including Wingtech in December. This decision was taken to prevent China from making advanced semiconductors and keeping in mind American national security. Let us tell you that there is a trade war going on between China and America for the last several years and America has imposed sanctions on many Chinese companies.
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