The acquisition will expand BYD Electronic's customer base and product boundaries and broaden its smartphone components business, BYD said.

(Image credit: CnEVPost)

BYD's electronics unit has reached an agreement with US manufacturer Jabil Inc to buy its mobile electronics manufacturing business in China for 15.8 billion yuan ($2.2 billion), the Chinese new energy vehicle (NEV) giant said in a Hong Kong stock exchange announcement today.

Singapore-based printed circuit board maker Jabil Circuit set up a unit earlier this month to absorb its product manufacturing operations in Chengdu and Wuxi, which will now be sold to BYD Electronic, according to the announcement.

The acquisition will expand BYD Electronic's customer base and product boundaries and broaden its smartphone parts business, BYD said.

This will increase product market share while effectively synergizing with BYD Electronic's existing products to enhance the company's overall competitiveness, BYD said.

Jabil Inc was founded in 1966 and is headquartered in Florida. It is a New York Stock Exchange-listed company with more than 250,000 employees in 100 locations in 30 countries.

Although BYD is now known for its NEV business, it started out selling electronic components. BYD first entered the automotive industry in 2003 when it acquired Qinchuan, a manufacturer with a license to manufacture automobiles.

BYD Electronic was founded in 1995 and has businesses in a variety of areas including smartphones and laptops, smart devices, automotive smart systems and healthcare. BYD Electronic was listed in Hong Kong in 2007.

BYD Electronic's revenue in 2022 was RMB107.2 billion, up 20.36 percent year-on-year, and its net attributable profit was about RMB 1.86 billion, down 19.58 percent year-on-year.

BYD's revenue in 2022 was RMB424 billion, up 96.20 percent year-on-year. Its net profit attributable to shareholders in 2022 was RMB 16.6 billion, up 445.86 percent year-on-year.

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