To expand its smartphone parts business, BYD Electronics plans to use $15.8 billion to pocket Jabil Singapore's business and equity in two Chinese cities.。On August 28, BYD announced that its holding subsidiary BYD Electronics (International) Co., Ltd. (BYD Electronics) and Jabil Inc..Jabil Circuit (Singapore) Pte.Ltd.("Jabil Singapore") has signed an acquisition framework agreement to acquire Jabil Singapore's product manufacturing operations in Chengdu and Wuxi, including parts manufacturing operations of existing customers, for approximately $15.8 billion ($2.2 billion equivalent) in cash.。According to the information disclosed in the announcement, Jabil Singapore has established a new legal entity in Singapore, Juno Newco Target Holdco Singapore Pte..Ltd.BYD Electronics and its subsidiaries will acquire 100% of the target company.。

In 2022, BYD successfully surpassed Tesla and took the top spot in global new energy vehicle sales.。If it goes on like this, will BYD be locked up like Huawei?？We don't think there's a high probability。First, because BYD is not as threatening as Huawei, and second, the auto industry is much more difficult to block than the mobile phone industry.。Unlike the chip industry, domestic cars are not overly dependent on a few foreign suppliers in the three-power system, and their three-power systems are not only self-sufficient, but also become suppliers to other large factories.。Tesla, for example, picked up BYD's blade battery in 2022, while Toyota's new electric BZ3 is a deeper collaboration。In fact, if you compare the automotive industry with the mobile phone industry in this way, BYD is more like Samsung, which is also a supplier of core components such as screens, memory, chips, etc. for mobile phones.。Huawei and its HiSilicon chips have been frantically targeted since five years ago because for the first time a Chinese company could dominate the development of industry standards。In contrast, the automotive industry is not so obvious strategic significance, coupled with the vast majority of BYD's orders are still generated in China, has not been able to kill the Quartet in the global market, so it seems that BYD and the entire Chinese automotive industry still have time to make up for the supply chain shortcomings.。Even though BYD's situation is not so bad, but in the crazy years still have to be prepared for the winter。

BYD Electronics announced its semi-annual earnings forecast for 2023 on July 14, according to HKEx disclosure documents.。The report shows that for the six months ended June 30, 2023, the company's profit attributable to shareholders may increase by 115% -146% year-on-year compared to the same period last year.。