THE electronics arm of electric vehicle (EV) maker BYD Co. has agreed to buy U.S.-based manufacturer Jabil Inc.’s mobile electronics manufacturing business in China for 15.8 billion yuan (US$2.2 billion)

The deal will expand BYD Electronic’s customer base, product portfolio and its smartphone components business as it looks to capture Jabil’s potential growth in the sector.

Jabil Circuit, which is based in Singapore and manufactures printed circuit boards, established a unit this month that absorbed its product-manufacturing businesses in Chengdu and Wuxi, which will now be sold to the Chinese group.

Although now best-known for its electric vehicle business, BYD started out by selling electronic components. In 2007, BYD listed BYD Electronic in Hong Kong.

BYD Electronic is a platform-based high-end manufacturing enterprise with businesses ranging from smartphones, tablet PCs, new-energy and unmanned aerial vehicles.

“For BYD, I think it’s a reminder that they do more than just dominate in EVs,” said Tu Le, founder of Sino Auto Insights, adding that they were higher up in the mobile supply chain and were a supplier to Apple.

Jabil said in a statement if the deal is completed, the definitive agreement would enable it to “enhance our shareholder-centric capital framework, including incremental share buybacks”, chief executive Kenny Wilson said.

The deal will allow Jabil to further invest in “electric vehicles, renewable energy, health care, AI cloud data centers, and other end-markets,” Wilson added.

Jabil has been one of the largest contract manufacturers in China, hiring tens of thousands of workers in Sichuan, Guangdong and Jiangsu provinces to make and assemble parts for Apple. (SD-Agencies)