https://www.scmp.com/tech/policy/article/3267114/intels-china-arm-acquires-minority-stake-telecoms-subsidiary-apple-supplier-luxshare
Intel’s China arm acquires minority stake in telecoms subsidiary of Apple supplier Luxshare
- Intel China has acquired a 3 per cent stake in Dongguan Luxshare Technology, which makes 5G products for data communications and wireless networks
Intel’s China arm has acquired a minority stake in the telecommunications subsidiary of
Apple supplier
Luxshare Precision Industry, according to business registry records, as the US
semiconductor giant looks to navigate the geopolitical tensions between the world’s two biggest economies.
Dongguan Luxshare Technology, a manufacturer of
5G-related products for data communications and wireless networks, has added Intel’s China arm as one its shareholders with a 3 per cent stake, according to information published on Monday by Chinese corporate database Qichacha.
Shenzhen-based Luxshare Precision, also known as Luxshare-ICT, has a nearly 90 per cent shareholding in its telecoms subsidiary. Electronics contract manufacturer Luxshare Precision makes a range of Apple products, including
iPhones,
AirPods, the
Apple Watch and mixed-reality headset
Vision Pro.
Intel and Luxshare Precision did not immediately respond to requests for comment on Tuesday.
The headquarters and main manufacturing facility of Dongguan Luxshare Technology is located at the Songshan Lake Hi-Tech Industry Development Zone in Dongguan, a city in southern Guangdong province. Photo: SCMP
US tech sanctions, however, have led Intel to develop modified versions of its Gaudi accelerators, releasing the China-specific HL-328 and HL-388 chips with reduced capabilities to comply with Washington’s export restrictions.
While China accounted for 27 per cent of its total revenue in 2023, Intel in May warned that its second-quarter revenue is expected to
fall below the midpoint of previously guided rangeof US$12.5 billion to US$13.5 billion because of a new US ban on chip exports to
Huawei Technologies. The US government in May revoked certain licences that allow Huawei to buy chips from Intel and
Qualcomm.
Apple AirPods supplier Luxshare Precision Industry, also known as Luxshare-ICT, assembles mixed-reality headset Vision Pro. Photo: Shutterstock
Established in 2017, Dongguan Luxshare counts Chinese tech giants Huawei and
Lenovo Group as major clients, according to its website.
Telecoms products and components accounted for 6 per cent of Luxshare Precision’s total revenue in 2023, which was up 13 per cent from the previous year, according to the firm’s annual report
Shares of Luxshare Precision in Shenzhen closed 2.68 per cent higher to 37.99 yuan (US$5.23) on Tuesday.