"Guangdong Tycoon" Sells 4.4 Billion in Assets to "Fruit Chain Queen"!

Betting on Amkor Semiconductor: Can It Break Through and Rebirth?

Author | Sun Mengyuan, Fang Lu

Editor | Yu Xing

Source | Ye Ma Finance

On March 9, WT Microelectronics (600745.SH) announced a major asset sale plan, proposing to transfer all equity of five subsidiaries and related business assets of three companies to Luxshare Precision and its subsidiary Luxshare Communications in cash. Except for the arbitration-involved India business assets, the remaining target assets have completed ownership registration, with no other litigation disputes. According to previous disclosures, the transaction amount is 4.389 billion yuan.

Zhang Xinyuan, a senior expert in corporate strategy and technological innovation management and head of Kefangde Consulting, believes that WT Microelectronics divesting its low-margin, high-loss ODM business is an active measure to cut losses and focus during industry downturns. This allows the company to lighten its load and concentrate on semiconductors, though short-term revenue may shrink and performance may be pressured, it is beneficial for long-term profitability; Luxshare Precision’s decision to take over is based on strengthening ODM share through customer and capacity expansion. Technical patents are not the focus. In the long run, integration risks remain, and the value of the deal depends on the delivery and operation.

Recently, a performance forecast with a maximum loss of 13.5 billion yuan has revealed a huge bill for WT Microelectronics’ core asset, Amkor Semiconductor, which is deeply embroiled in a control dispute. According to its performance forecast disclosed on January 30, the company expects a net loss of 9 to 13.5 billion yuan in 2025.

WT Microelectronics stated that, due to restrictions on its control over Amkor during the reporting period, it will recognize significant investment losses and asset impairment losses, which will greatly impact performance.

The root of this turmoil lies in the ongoing control dispute over Amkor Semiconductor (Nexperia) since the second half of 2025, which remains unresolved.

However, encouraging news is that, on March 9, 2026, Amkor Semiconductor (China) announced the successful small-batch production of bipolar discrete devices based on its self-developed “12-inch platform,” and successfully tested new ESD protection devices. This marks a turning point for Amkor China after being cut off by the Dutch Amkor for half a year. As of now, the Dutch side has not resumed wafer supply to Amkor China, and they have not responded to this breakthrough in wafer manufacturing.

As of March 13, WT Microelectronics closed at 33.11 yuan per share, with a total market value of 41.21 billion yuan.

01

The Queen of the Fruit Chain Takes Over

WT Microelectronics started with mobile phone solution design, establishing its own manufacturing plant in 2008 to achieve vertical integration from design to manufacturing, becoming China’s first ODM (Original Design Manufacturer) for mobile phones. It later expanded into tablets, laptops, IoT, home appliances, and automotive electronics. From a business perspective, the semiconductor segment mainly focuses on R&D and manufacturing of semiconductors and new electronic components; the product integration segment mainly involves R&D and manufacturing of smart terminal products.

In recent years, WT Microelectronics’ product integration business has faced dual pressures from low profit margins and external policy environments. In 2024, this segment contributed nearly 80% of the company’s revenue, but with a gross margin of only 2.49%; in the first half of 2025, revenue was 17.485 billion yuan, with a net loss of 685 million yuan. The low gross margin, combined with the impact of the US Entity List, led to asset impairments in this business, which also caused a significant decline in the company’s net profit for the period.

Looking at the company’s overall performance, WT Microelectronics has been loss-making in recent years. Data shows that WT Microelectronics expects a net profit attributable to the parent company of between -13.5 billion and -9 billion yuan in 2025, indicating a loss. After deducting non-recurring gains and losses, the net profit is expected to be between -300 million and -200 million yuan. In 2024, WT Microelectronics lost 2.833 billion yuan. This means that the net loss in 2025 will likely be at least double that of 2024.

This has accelerated WT Microelectronics’ strategic adjustment. At the end of 2024, the company announced plans to sell assets related to the product integration business to focus resources on improving semiconductor profitability. Subsequently, WT Microelectronics initiated a transaction with Luxshare Precision, proposing a cash deal to transfer the company and its controlling subsidiaries’ equity in nine target companies and related assets.

The acquirer, Luxshare Precision, is a well-known fruit chain company, founded in 2004 and listed on the Shenzhen SME Board in 2010. Its actual controllers are siblings Wang Laisheng and Wang Laichun, with Wang Laichun being dubbed the “Queen of the Fruit Chain” for her deep involvement and precise layout in Apple’s supply chain and her strong control over the company.

Under their leadership, Luxshare Precision rapidly grew from an inconspicuous connector manufacturer to a core Apple supplier, with business covering consumer electronics, automotive, communications, industrial, and medical fields, providing integrated smart manufacturing solutions from key components and modules to system assembly. As of March 13, 2026, Luxshare Precision’s total market value reached 359.4 billion yuan, making it a leading and influential company in the fruit chain industry.

Regarding the reason for this takeover, Luxshare Precision stated in a November 2025 investor survey that it needs WT Microelectronics’ ODM capabilities because future AI edge products require stronger ODM/JDM capabilities. WT’s large ODM engineering team of two to three thousand people and its extensive procurement supply chain for phones and tablets can quickly empower Luxshare Precision’s development of AI edge products.

According to the “Major Asset Sale Report (Draft)” released by WT Microelectronics on May 16, 2025, the transaction amount is 4.389 billion yuan. The delivery of various target assets is underway, with the transfer of Kunming Zhitong, Shenzhen WT, Huangshi Zhitong, Kunming Wexun equity, and related assets of Wuxi WT and Wuxi Wexun completed, and the transfer of WT’s India business assets also finalized.

Image source: Company announcement

However, there has been ongoing dispute over the India business assets. On January 12, 2026, WT Microelectronics announced that both parties had completed the agreed asset transfer, but Luxshare Precision unilaterally claimed the termination of the “India Asset Agreement” citing issues related to contract performance. The company is actively responding according to arbitration rules and relevant laws, while Luxshare has not responded to this matter.

A March 11, 2026, announcement showed that Luxshare Lian Tuo submitted the dispute to the Singapore International Arbitration Center (SIAC). As of the announcement date, the arbitration had not yet started, still in panel formation. WT Microelectronics has officially initiated legal procedures, preparing relevant documents, confirming arbitration procedures, and evaluating legal options.

WT Microelectronics warns that the final arbitration ruling and liability attribution remain uncertain, and it is currently unable to accurately estimate the specific impact on the company’s finances. The company will continue to respond to the dispute and seek solutions within the legal framework to protect its interests.

02

What Does WT Microelectronics Still Have?

After divesting its low-margin, high-loss ODM business, WT Microelectronics will focus entirely on its core semiconductor assets—namely, Amkor Semiconductor—a company with over 60 years of industry experience, originally part of Philips Semiconductors, and the world’s leading IDM in automotive semiconductors.

Rewinding to 2019, WT Microelectronics’ cross-border acquisition of Amkor Semiconductor.

Founded in 2006 by a foreign-invested company with $10 million, Zhang Xuezheng served as chairman and CEO; he previously worked as an engineer at ITE Tech and as an assistant general manager at ZTE. He founded WT Communications in the same year.

In 2011, WT Microelectronics became a joint-stock company, with Zhang Xuezheng as the actual controller through capital increases and share transfers. In 2015, Zhongyin Co. acquired 51% of WT for 1.826 billion yuan to help it go public; in 2017, Zhongyin renamed itself “WT Microelectronics.”

As a core founder, Zhang Xuezheng’s personal wealth is closely tied to the company’s development: In 2020, after acquiring Amkor, the company’s performance soared, and he ranked 188th on the Hurun Rich List with 27 billion yuan; but as the company’s performance continued to decline and control disputes over Amkor intensified, his wealth shrank significantly. In October 2025, Zhang appeared on the 2025 Hurun Rich List with 8.5 billion yuan, ranking 847th.

In 2018, WT Microelectronics decided to acquire Amkor Semiconductor, which had over 60 years of experience and was the world’s top in automotive semiconductor market share, due to profit pressure and declining net profit. To complete this “small bet big” acquisition, WT, then valued under 20 billion yuan, used 1.7 billion yuan of its own funds, along with strategic investors’ 11.435 billion yuan, to acquire 49.37% of Hefei Guangxin LP; in 2020, it spent 6.334 billion yuan to control 98.23%, and in 2022, through a wholly owned subsidiary, it acquired GP and indirectly controlled the UK NWF wafer factory, completing the transfer of Amkor’s global assets with a total deal exceeding 34 billion yuan.

After acquiring Amkor, WT’s performance surged. In 2019, net profit attributable to the parent reached 1.25 billion yuan, nearly 20 times the previous year. In fact, Amkor’s revenue peaked at 2.36 billion euros in 2022, with gross margin jumping from 25% in 2020 to 42.4% in 2022. By October 2024, Amkor had paid off all pre-existing debts, achieving “zero debt” operation.

As WT’s core profit driver, Amkor’s situation has a profound impact on the company. However, last year’s “entity list” incident affected WT’s performance. Financial data shows that in 2024, WT’s revenue was about 73.598 billion yuan, up 20.23% year-on-year; net profit was approximately -2.833 billion yuan, a sharp decrease of 339.83%. Cash flow from operating activities was about 4.492 billion yuan, down 22.88%.

At that time, WT pointed out that being listed on the Entity List and the broad interpretation and enforcement of restrictions by suppliers and customers had a comprehensive negative impact on its product integration business, leading to a significant decline in net profit, non-recurring profit/loss, and earnings per share compared to the previous year.

03

Dilemma Amidst the Turmoil

This turmoil began in December 2024, when WT Microelectronics was added to the U.S. Department of Commerce’s BIS Entity List, followed by tighter controls by the Netherlands.

On September 30, 2025, the Dutch Ministry of Economic Affairs and Climate Policy issued a ministerial order to Amkor Semiconductor, prohibiting its 30 global entities from adjusting assets or intellectual property for one year; the next day, Amkor’s senior executives filed an emergency request with the local court, which temporarily suspended Zhang Xuezheng’s duties and placed Amkor shares under third-party custody. The final ruling on October 6 further reinforced this temporary measure.

The Dutch government also took over Amkor Semiconductor citing “improper transfer of Amkor resources” under the “Goods Availability Act,” escalating the conflict.

Subsequently, WT also issued a warning in its Q3 2025 report: if control over Amkor cannot be restored by the end of 2025, the company may face phased reductions in revenue, profit, and cash flow.

As 2026 unfolds, this dispute remains unresolved.

On February 11, the Dutch Commercial Court announced its decision to investigate alleged mismanagement at Amkor Semiconductor.

On February 12, WT issued a statement that the court’s latest ruling did not lift the temporary measures or restore WT’s legal control, and expanded the investigation to the current temporary management of Amkor. WT expressed strong dissatisfaction and said it would continue legal efforts to regain full control and governance of Amkor.

On March 6, Amkor Semiconductor issued a customer notice stating that from March 3, 2026, Nexperia B.V. (Dutch Amkor) had mass-disabled all employee work accounts in China, affecting access to Office 365, SAP, and other critical systems, significantly impacting operations in China.

This caused disruptions in some production processes, such as “customer wafer orders entering production after SAP placement,” though orders already in production were unaffected. The China IT and business teams have launched emergency plans to restore key systems and production scheduling. Most operations have now resumed, ensuring basic production and delivery, while efforts are ongoing to minimize potential impacts.

Due to the restrictions from the Entity List and control over Amkor, the second-largest shareholder, Wuxi Guolian, has reduced holdings twice. From June to September 2025, it planned to reduce no more than 3% of total shares but only reduced 0.9979%; in November, it again planned to reduce no more than 37.34 million shares (3%), citing “own business needs.” As of March 13, 2026, Wuxi Guolian still holds 62.2326 million shares, accounting for 5%.

Image source: Tianyancha

Notably, according to “21st Century Business Herald,” WT’s experience with overseas investment injustice is not new. In 2021, WT acquired NWF in the UK to expand capacity, but in 2022, the UK invoked new laws for retrospective review, which failed, leading WT to sell NWF shares to Wistron in November 2023, completing the transfer in March 2024.

As a global ODM leader, WT is choosing to sell core businesses and focus on semiconductors. Faced with the ongoing dispute over Dutch Amkor, WT is actively seeking transformation and survival. The end of negative news might be a new beginning. Do you think WT Microelectronics can emerge from the trough? Share your thoughts in the comments.

Author’s note: Personal opinions for reference only.