Wingtech Technology, a Chinese electronics supplier for Apple, plans to sell its stakes in five subsidiaries to Luxshare Precision Industry.

The agreement, disclosed in a Shanghai Stock Exchange filing, includes assets from three additional Wingtech units.

The deal, valued at 4.6 billion yuan (US$635 million), marks Wingtech’s full exit from the product assembly business.

The company cited geopolitical factors as the reason for its decision, aiming to shift focus to semiconductors.

Wingtech was added to the US Commerce Department’s entity list in December 2023, leading to procurement, R&D, and sales disruptions. The sanctions have impacted its assembly business, causing a loss of project orders.