Electric vehicle maker BYD’s electronics arm, which operates a Vietnam plant making products and components for Apple, has agreed to buy U.S.-based manufacturing firm Jabil’s mobility business in China for around $2.2 billion.
BYD Electronic International Co. is taking over Jabil’s product manufacturing business located in Chengdu and Wuxi, China, the BYD arm announced Monday, adding the deal includes the manufacturing of products for existing customers.
The Chinese EV giant’s electronics firm, with factories in Vietnam and China, makes a wide variety of products from smartphone cases to wireless modules used in cars.
The Vietnam facility, with $269 million in total investment and located in Phu Ha Industrial Park in the northern province of Phu Tho, started full operations in August 2022, making iPads for Apple. The plant obtained a nod this February to make chips, electronic modules, 4G and 5G modems, and camera drones.
In May, Phu Tho officials allowed BYD to add $183.7 million to the investment project.
As for BYD Electronic International’s $2.2 billion acquisition of Jabil’s mobility business, Jabil CEO Kenny Wilson said in a company release Sunday: “This transformational deal would represent the largest transaction in the history of our company, and I am thrilled to be able to work with a reputable company like BYDE to drive this business successfully forward.”
“Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets," he added.
The deal marks the latest retreat by a manufacturer from China and also accelerates BYD’s expansion into mobile electronics.
BYD, dubbed China’s Tesla, will expand its investment in Vietnam with plans to manufacture EVs in the country for the market and others in Southeast Asia, BYD chairman Wang Chuanfu told a meeting with Vietnam’s Deputy Prime Minister Tran Hong Ha in May. He proposed the Vietnamese government facilitate BYD to complete investment procedures for the plans, which also include assembly work.
Wang, also founder of BYD, did not disclose the investment size to the deputy PM. He said the planned business expansion would include establishing a supply chain in Vietnam focusing on support industries for EV production to diversify its supply chain network.
Jabil, listed on the New York Stock Exchange as JBL, claims it is a manufacturing solutions provider with over 250,000 employees across 100 locations in 30 countries and territories. It says global leading brands rely on its breadth and depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights, and global product management expertise.