SAMR has penalised the two electronics firms for procedural violations in their now-collapsed asset sale, the latest signal of Beijing’s tightening merger-enforcement posture.
China’s State Administration for Market Regulation has fined Luxshare Precision Industry and Wingtech Technology for violations in connection with their now-unravelling asset sale, according to a Reuters report on Wednesday.
The fine is the latest formal step in a deal that has, over the past 18 months, gone from an under-pressure divestment to a Singapore arbitration case to an example of how exposed Chinese electronics groups now are to overlapping commercial, geopolitical and regulatory shocks.
The transaction at issue was Wingtech’s sale of its product-assembly business to Luxshare, agreed in early 2025 at around 4.4–4.6bn yuan ($630m). Wingtech, the iPhone supplier and Nexperia parent, had been pushed into the sale by US-sanctions losses that made the assembly side of its business commercially unsustainable. Luxshare, the Foxconn rival best known as a major Apple supplier, agreed to absorb the assembly assets including the Indian manufacturing footprint.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The deal began to come apart almost immediately. Indian authorities seized the local manufacturing assets on national-security grounds, citing concerns about Chinese ownership of strategic electronics-manufacturing capacity. Luxshare paid roughly 2bn rupees ($22m) up front but found itself unable to complete the transfer.
