(Yicai Global) Dec. 3 -- Chinese household appliance giant Gree Electric Appliances will invest CNY3 billion (USD432.3 million) in two of Wingtech Technology's units to take part in Wingtech's acquisition of Dutch chip maker Nexperia.

Gree said this in a Dec. 1 statement, which added that Wingtech Technology will gain control over Nijmegen, Netherlands-based Nexperia via the acquisition, while Gree will become a major shareholder of Wingtech.

Gree will use Wingtech's research capacity to build its fifth-generation mobile network industry chain, and achieve diversified, steady growth in the fields of smart home, and intelligent and telecom equipment. 

It will also expand into the semiconductor area with the upstream reach of Nexperia, the Zhuhai, Guangdong province-based appliance maker said, confirming the investment value of the project.

Wingtech has suspended trading since April 17 this year because of its CNY26.9 billion (USD3.9 billion) acquisition of Nexperia.

Gree will become Wingtech's major shareholder and investor after it acquires Nexperia through share issuance and cash. Gree and Wingtech will play their core strengths and join hands in communications terminals, Internet of Things, smart hardware, and other areas, Gree said.

Wingtech boasts an innovative research and development platform for 4G and 5G smart terminals, which covers the research and development and smartt production of artificial intelligence, IOT, smart phones, tablets, smart hardware, notebook computers, automotive electronics and other intelligent terminals, per the statement. Wingtech Technology has  maintained its lead in shipments in the world's original design mobile phone manufacturing industry, public survey data shows.

Nexperia is the world's leading supplier of standard semiconductor components, and its physical assets are the original NXP Semiconductors standard device unit. 

The company's core downstream customers are in the auto industry. Its business spans mobile and wearable devices, industrial and telecom infrastructure, consumer electronics and computers, of which it is a leading world manufacturer and service provider. National security concerns by the US and other potential sources make Nexperia one of the few semiconductor targets that Chinese companies can currently acquire.

Gree was tensed for a chance to enter the field long before this deal came along. It invested CNY1 billion (USD144.1 million) to found a wholly-owned unit in Zhuhai in southeastern Guangdong province in August that plies the semiconductor, integrated circuits and chip business, public data shows.

Hefei, Anhui province-based Zhongwen Jintai Semiconductor Investment and Zhuhai-based Ronglin Equity Investment Partnership will invest CNY3 billion (USD423.3 million) to acquire Nexperia.

Gree's shares [SHE:000651] jumped 3.07 percent to CNY37.98 (USD5.47) today.

Editor: Ben Armour