Latest news, wireless connection chip manufacturer Qorvo has announced that a final agreement has been reached to sell its assembly and testing facilities located in Beijing and Texas, China to contract manufacturer Lixun Precision Industries. The financial terms of the transaction have not been disclosed and are expected to be completed in the first half of 2024.

Qorvo added that after the transaction is completed, Lixun Precision will acquire the operations and assets of each factory, including property, plant and equipment, as well as existing employees, while Qorvo will continue to retain its sales, engineering, and customer support employees in China.

It is reported that Lixun Precision will assemble and test products for Qorvo according to the newly signed long-term supply agreement.

Qorvo CFO Grant Brown said, "This transaction further drives our efforts to reduce capital intensity, while supporting our long-term gross profit margin goals and ensuring continuity for Chinese customers."

The company stated that its factories in Beijing and Texas mainly support Qorvo's integrated advanced cellular products.

Data shows that Qorvo produces RF chips for cellular and Wi Fi connections in 5G base stations, smartphones, and other small tools. Qorvo's largest customer is Apple, which accounted for 37% of the company's total revenue as of the 2023 fiscal year in April. Qorvo still benefits from strong demand for iPhones in China. In addition to Apple, Qorvo's customers also include Huawei, OPPO, Xiaomi, Lenovo, Samsung, Qualcomm, and others.