Xiaomi and OPPO Invest in Optics Tech of Apple Supplier AAC Technologies
AAC technologies, as one of the most comprehensive consumer electronics upstream suppliers in China, plays in the verticals of acoustic, precision processing, haptics and optics.
AAC technologies (02018:HKEX) has announced that two of China’s largest smartphone vendors – Xiaomi (01810:HKEX) OPPO – are strategic investors in AAC’s optics business segment. Along with two other companies participating, the strategic investors will obtain a total of approximately 9.58% of the enlarged equity. Xiaomi’s industrial fund and OPPO will take the biggest shares, both at 4%.
Excepting Samsung and Huawei, AAC technologies now has the rest biggest three smartphone companies –Apple (AAPL:NASDAQ), Xiaomi and OPPO – as its customers. The cooperation mainly lies in its acoustic components business. Letting in the strategic investment of CNY 1.15 billion in its optics business, the company is likely to optimize its business resource integration.
For Xiaomi and OPPO, becoming strategic investors in optics should let them benefit from AAC’s exclusive optics technology WLG (Wafer Level Glass) as they apply it to their upcoming flagship products. As the upgrading of communication networks rolls out, the market demand for HD cameras to produce HD photos and videos is in sharp increase. Remaining in front of trends in camera functions is of vital strategic importance for smartphone vendors.
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