BYD Electronic Acquires Jabil’s Mobile Electronics Manufacturing Business in China

BYD Electronic’s expansion strategy takes a significant leap as it announces the acquisition of Jabil Inc’s mobile electronics manufacturing arm in China, a move aimed at solidifying its customer outreach and diversifying its product portfolio in the smartphone components sector.

In a recent disclosure to the Hong Kong stock exchange, BYD revealed its electronics division’s successful negotiation with US-based manufacturer Jabil Inc. The deal, valued at 15.8 billion yuan ($2.2 billion), paves the way for BYD to take over Jabil’s mobile electronics manufacturing business in China. This strategic move is anticipated to reinforce BYD’s standing in the new energy vehicle (NEV) industry.

Jabil Circuit, headquartered in Singapore, established a specialized unit earlier this month to manage its manufacturing operations in Chengdu and Wuxi. In an announcement, it was conveyed that these operations will now be transferred to BYD Electronic as part of the acquisition deal.

The intended acquisition is poised to yield considerable benefits for BYD Electronic. It stands to expand the company’s clientele and extend the range of products it offers, with a particular emphasis on enriching its smartphone components division. BYD’s vision for this acquisition is not only to amplify its market share but also to harness synergies between the newly acquired assets and its existing product lines. This strategic alignment is anticipated to enhance the overall competitive prowess of BYD Electronic.

While BYD has garnered recognition primarily for its strides in the NEV sector, it traces its roots back to its origins in the sale of electronic components. The company’s automotive journey began in 2003 when it acquired Qinchuan, a manufacturer holding a license for automobile production.

Since its establishment in 1995, BYD Electronic has exhibited diversification across various domains, encompassing smartphones, laptops, smart devices, automotive smart systems, and healthcare. Notably, the company achieved its listing on the Hong Kong stock exchange in 2007.

In the fiscal year 2022, BYD Electronic achieved a revenue of RMB 107.2 billion, marking a notable year-on-year growth of 20.36 percent. However, the net attributable profit experienced a decline of 19.58 percent, amounting to approximately RMB 1.86 billion.

In tandem, BYD’s overall revenue in 2022 surged to RMB 424 billion, representing a remarkable year-on-year increase of 96.20 percent. The net profit attributable to shareholders for the same period soared by an impressive 445.86 percent, reaching RMB 16.6 billion.

The acquisition of Jabil Inc’s mobile electronics manufacturing business in China heralds a new chapter for BYD Electronic, poised to empower the company’s foothold in the dynamic landscape of smartphone components while fortifying its position as a prominent player in the technological sector.