Qorvo, a trailblazing global provider of connectivity and power solutions, has recently announced a strategic and mutually beneficial partnership with Luxshare, a renowned global advanced contract manufacturer. This collaboration involves the transfer of Qorvo’s assembly and test facilities in Beijing and Dezhou, China, to Luxshare.

Set to be completed by the first half of calendar 2024, pending regulatory approvals, this agreement marks a significant milestone for both companies. Luxshare will not only acquire the operations and assets of the facilities but will also maintain the existing workforce, ensuring a seamless transition and the continuous delivery of high-quality products.

Post-transaction closure, Luxshare will take on the responsibility of assembling and testing products for Qorvo under a newly established long-term supply agreement. The Beijing and Dezhou facilities, crucial for supporting Qorvo’s advanced cellular products, will benefit from Luxshare's extensive experience as a trusted supplier to some of the world’s leading electronics companies. Luxshare's commitment to providing top-tier production capacity aligns perfectly with Qorvo's dedication to maintaining quality and meeting the demands of its global customer base.

Bob Bruggeworth, Qorvo’s president and chief executive officer, expressed confidence in the partnership, stating, “After carefully considering multiple alternatives over the past few years, we feel that we have found the right partner to continue supporting our customers from these factories. Luxshare's scale and well-established, high-volume manufacturing competency make them an outstanding strategic partner in our supply chain.”

Grant Brown, Qorvo's chief financial officer, emphasized the positive impact of the transaction, saying, “This partnership furthers our efforts to reduce capital intensity while supporting our long-term gross margin objectives and ensuring continuity for our customers in China.”

Until the transaction concludes, the Beijing and Dezhou facilities will continue to operate as part of Qorvo’s global manufacturing network. Post-closure, Qorvo’s assembly, packaging, and test network will thrive with facilities in the United States, Costa Rica, and Germany, along with esteemed global outsourced semiconductor assembly and test (OSAT) partners. This strategic move not only strengthens Qorvo's global footprint but also underscores the company’s commitment to innovation and customer satisfaction.