Former iPhone contract manufacturer Wituang invested NT $999 million in chip designer Shixin to strengthen AI business.

CTOnews.com June 27, according to the CAN news agency, the contract manufacturer Willon recently issued a statement saying it will invest 999 million New Taiwan dollars (CTOnews.com Note: currently about 233 million yuan) to buy a stake in chip designer Shixin at a price of 1448 New Taiwan dollars per share (currently about 337 yuan).

▲ Tupu Source: according to the report, Wituang believes that as a contract manufacturer, its business is complementary to Shixin and will cooperate in artificial intelligence, high-performance computing, vehicles and other fields in the future. CTOnews.com noted that Willon acquired about 690000 shares, with a shareholding ratio of about 0.94%.

According to reports, the Weichuang camp received about NT $63.328 billion (currently about RMB 14.755 billion) in May this year, a decrease of 14.81% on an annual basis, while consolidated revenue in the first five months was about NT $337.454 billion (currently about RMB 78.627 billion), an annual decrease of 8.58%. Wei Chuang believes that as the demand for servers driven by the upsurge of generative AI continues to rise, the related OEM business of Weituang graphics cards will grow, and shipments will show an upward trend.

The predecessor of Weitron is the design, production and service department established by Acer in 1981 and is positioned as a professional supplier to ODM. Because of its meagre profits, Wistron sold its iPhone assembly plant in Karnataka, India, to Tata Group for $600m (currently about RMB 4.344 billion) earlier this year, meaning it withdrew from iPhone's assembly supply chain altogether.