(Yicai Global) Oct. 25 -- Wingtech Technology has announced plans to invest CNY3 billion (USD411 million) expanding capacity at the semiconductor packaging and testing plant of Nexperia Semiconductors China, a unit of the smartphone assembler.

Wingtech signed a deal with the local government of Dongguan, Guangdong province, where the plant is located, the Jiaxing-based company said late yesterday. Construction work will begin within 12 months and be completed in a year and a half.

The factory makes semiconductor devices, analog integrated circuits, logic ICs, and metal-oxide-semiconductor field-effect transistors, Wingtech said, without revealing the expected production volume once the expansion is completed. The project will improve Wingtech’s long-term core competitiveness and sustainable profitability, it added.

Nexperia is a leading supplier of semiconductor devices, whose business covers semiconductor design, manufacturing, packaging, and testing. Its customers include some internationally-renowned companies in the auto, communications, and consumer goods fields. Wingtech acquired the firm in November 2019.

Shares of Wingtech [SHA: 600745] fell 1.3 percent today to CNY45.31 (USD6.20).

Editor: Futura Costaglione