By Li Panpan

Chinese mainland's electronics manufacturing service and connector supplier Luxshare Precision(立讯精密) will buy Lite-On’s multifunctional business machine unit of Lite-On (光宝) and may finalize the deal after the end of November, JW Insights learned from the Taiwan region press.

Founded in 2004 and listed on the Shenzhen Stock Exchange in September 2010, Luxshare Precision is based in Dongguan, southern China’s Guangdong Province, and provides cable assembly and connector system solutions for global clients in consumer, automotive, cloud, and enterprise applications.

Lite-On's revenue this year is estimated to exceed NT$170 billion ($55.02 billion), and the revenue contribution of the multifunctional business machine unit is about 5% to 6%. Industry insiders believe that although the sale of the multi-functional business machine unit will reduce the firm’s annual revenue by about NT$10 billion ($320 million), Lite-On's gross profit margin next year will possibly increase further, said the JW Insights report.

Lite-On's most familiar OEM customer in the multi-functional business machine market is Lexmark, a major American manufacturer.

In 2018, Luxshare Precision acquired Lite-On’s mobile phone camera module unit at a price of $360 million, creating an opportunity to offer more one-stop supply services.