In the latest news, Qorvo, a maker of wireless connectivity chips, said it has reached a definitive agreement to sell its assembly and test facilities in Beijing, China and Texas to contract manufacturer Lucent Precision Industries. Financial terms of the deal, which is expected to close in the first half of 2024, were not disclosed.

Qorvo added that upon completion of the transaction, Lucent Precision will acquire the operations and assets of each facility, including property, plant and equipment, and existing employees, while Qorvo will continue to retain its sales, engineering and customer support employees in China.

Lucent Precision will reportedly assemble and test products for Qorvo under a new long-term supply agreement.

Grant Brown, Qorvo's chief financial officer, said, "This transaction furthers our efforts to reduce capital intensity while supporting our long-term gross margin targets and ensuring continuity for our customers in China."

The Beijing and Texas facilities primarily support Qorvo's integrated advanced cellular products, the company said.

Qorvo makes RF chips for 5G base stations as well as cellular and Wi-Fi connectivity in smartphones and other gadgets, according to the profile.Qorvo's largest customer is Apple, which accounted for 37 per cent of the company's total revenues in its fiscal year 2023, which ended in April, and it continues to benefit from strong demand for iPhones in China. In addition to Apple, Qorvo's customers include Huawei, OPPO, Xiaomi, Lenovo, Samsung and Qualcomm.

* Disclaimer: The news in this article originated from Qorvo, Tibco.com, collated by YuanXinAi Electronics, the news has not been officially confirmed, and is only for the purpose of communication and learning.