Shanghai (Gasgoo)- On February 22, Great Wall Motor ("GWM") announced that its wholly-owned subsidiary, Nobo Automotive Technology Co., Ltd. ("Nobo Technology"), plans to acquire an 80% stake in Wuxi Xindong Semiconductor Technology Co., Ltd. ("Wuxi Xindong") from Wensheng Technology (Tianjin) Co., Ltd. ("Wensheng Technology") for 3.79 million yuan.
Upon completion of the transaction, Nobo Technology will hold 80% of Wuxi Xindong's shares, while GWM will retain the remaining 20% directly. This will enable GWM to achieve full control over Wuxi Xindong through direct and indirect ownership, incorporating the company into its consolidated financial statements.
Established in November 2022 with a registered capital of 50 million yuan, Wuxi Xindong specializes in automotive-grade chip development, covering areas such as intelligent driving, smart cockpits, and power semiconductors like IGBT and SiC. Initially, GWM held a 20% stake in Wuxi Xindong, while GWM's Chairman Wei Jianjun personally invested 10%, and Wensheng Technology, controlled by Mr. Wei, contributed 70%. The company's founding marked GWM's strategic move into in-house chip development.
According to GWM, this acquisition will enhance its vertical integration of supply chain, improve operational efficiency, and strengthen industrial synergy, ultimately reducing costs and boosting overall corporate competitiveness.
The move aligns with GWM's "Forest Ecosystem" strategy, introduced around 2020, which focuses on vertical integration across key sectors such as batteries (SVOLT), autonomous driving (HAOMO.AI), and smart cockpits (Nobo Technology). Wuxi Xindong's inclusion fills a crucial gap in GWM's in-house development of automotive-grade chips, reducing external dependencies and fostering synergies with subsidiaries like SVOLT and HAOMO.AI.
