On Monday, Chinese automaker BYD announced that its electronics division has successfully negotiated an agreement with U.S.-based manufacturer Jabil Inc to acquire its mobile electronics manufacturing business in China for a sum of 15.8 billion yuan ($2.2 billion).

BYD Electronics will acquire the mobile electronics manufacturing business of Jabil Inc. in the Chinese cities of Chengdu and Wuxi for a total of RMB 15.8 billion ($2.2 billion). As part of this arrangement, Jabil Circuit will shift its operations in these cities to a newly-established entity named Juno Newco Target Holdco Singapore Pte. Ltd. Subsequently, BYD Electronics will proceed to purchase all shares of this new entity.

Through this deal, BYD Electronics is poised to broaden its customer reach, augment its product lineup, and enhance its smartphone components division. This strategic move aligns with their objective of tapping into the anticipated growth potential within the sector that Jabil holds.

Jabil Circuit, headquartered in Singapore and specializing in the production of printed circuit boards, recently formed a subsidiary in the current month. This newly established entity encompassed its product manufacturing operations located in Chengdu and Wuxi.

Despite its current prominence in the electric vehicle industry, BYD originally began its journey by trading electronic components. In 2007, it undertook the listing of its BE unit on the Hong Kong Stock Exchange.

BE's primary focus lies in the sale of electronic components used in consumer electronics like smartphones and laptops. Within BYD Electronic, this constituted one of the three pivotal business divisions, contributing to over 70% of the company's overall revenue in the year 2022.