Chinese EV maker BYD acquires US-based Jabil’s mobility business for $2.2B

BYD struck a deal with Jabil Inc. to buy its Chinese mobile electronics manufacturing business for 15.8 billion yuan ($2.2 billion).

In order to compete with Jabil's potential growth in the market, the deal will broaden BYD Electronic's (BE) customer base, product line, and smartphone component business.

Jabil Circuit, a printed circuit board manufacturer with headquarters in Singapore, established a unit this month that absorbed its product manufacturing operations in Chengdu and Wuxi. These operations will now be sold to the Chinese group.

BYD Electronic's stock initially decreased by as much as 9% on Monday in Hong Kong, but it later recovered its losses and increased by 0.5% by afternoon, while the overall market increased by 1.5%. The parent company's Hong Kong-listed stock increased by 0.9%.

BYD initially sold electronic components but is today well recognized for its electric vehicle industry. BYD floated its BE division on the Hong Kong Stock Exchange in 2007.

Selling electronic components for consumer electronics items like laptops and smartphones has been BE's main line of business. More than 70% of BYD Electronic's total revenue in 2022 came from one of the three primary business segments.

Sino Auto Insights founder Tu Le stated that for BYD, it was a reminder that they do more than just dominate in EVs, adding that they were further along the mobile supply chain and a supplier to Apple Inc.

In a note, Citi analysts stated that they thought the transaction involved Jabil's Green Point metal casing operations in Wuxi and that it might allow BE to further encroach on Apple's casing supply by gaining a larger market share.