[News] Wistron Completes Factory Sale to NXP in Malaysia’s Free Trade Zones for approximately USD $392 Million

2023-11-13 Consumer Electronics editor

On November 9th, EMS (Electronic Manufacturing Services) giant Wistron, through its Malaysian subsidiary WMMY, disclosed the successful completion of the sale of consumer electronics production facilities in the Selangor and Sungai Way Free Trade Zones.

The company is set to sell the properties, which include factories and land in these two free trade zones, to semiconductor major NXP for approximately 1.85 billion Malaysian Ringgit (equivalent to roughly USD 392million).

Wistron announced that its subsidiary WMMY (Wistron Technology Sdn. Bhd.) signed a “Letter of Offer to Purchase” with the unrelated entity NXP Malaysia Sdn. Bhd. According to Malaysian regulations, when buying or selling a property, the buyer can place a deposit and sign a preliminary contract with the seller.

However, within 14 business days, a formal sales agreement needs to be signed between the buyer and the seller for the transaction to be completed.

Wistron had declared through its subsidiary WMMY back in September of this year that it intended to divest its property (including factories and land) in the Selangor and Sungai Way Free Trade Zones in Malaysia in response to external economic changes and global strategic considerations.

At that time, the specifics of the transaction, including the counterpart and amount, were undetermined. The company had only established that the total transaction amount should not be less than 185 million Malaysian Ringgit (approximately 39.2 million USD). The deal presented by NXP aligns with these conditions, thus facilitating the progress of the factory sale.

Wistron has initiated several factory sales in recent years, including the iPhone assembly plants in Kunshan, China, and India, as well as the consumer electronics plant in Malaysia. The Kunshan facility was sold to Luxshare, a Chinese manufacturer, while the Indian plant was acquired by Tata Group, an Indian electronics corporation. The Malaysian plant, in this instance, is sold to the semiconductor giant NXP, and the transaction is projected to conclude within 14 days.

NXP currently operates six wafer fabs in the United States, the Netherlands, and Singapore, with four assembly and testing facilities situated in Taiwan, China, Thailand, and Malaysia.

The company specializes in producing application processors, communication processors, wireless connectivity SoCs, RF amplifiers, security system ICs, various analog products, and MCUs (microcontrollers).

Wistron’s manufacturing facility in Selangor, Malaysia, is mainly responsible for material fabrication, manufacturing, industrial engineering, production management, mechanisms, quality assurance, and production management.

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(Photo credit: Wistron)