In today's fast-changing economic market, companies are looking for the right time to gain more benefits for themselves in times of global economic turmoil.
BYD has a pivotal position in the mainland car companies, and in recent years, it has put the general direction of development in the international market, and has achieved good results.
With the increasing influence and the rise of market value, BYD has let go of its hands and feet, and recently announced the acquisition of Jabil Electronics, a Singaporean electronics manufacturing company, for 18.5 billion, which caused turmoil in the entire market.
After seeing this news, there are many people who don't know much about Jabil as a company.
Everyone wonders what the company does and why BYD is spending a lot of money to buy it.
1. BYD acquired Jabil Electronics
Careful netizens should be able to find that the mainland has achieved rapid development in recent decades, from lagging behind Western countries before, to now being able to walk side by side with them, in just a few decades, the other party has achieved hundreds of years of achievements, which is unexpected by everyone.
The biggest advantage of the mainland is that it has always attached great importance to national enterprises and technology and innovation, and BYD, as the leader of new energy vehicles in the mainland, has shown its advantages in many fields.
Ideal, Weilai, Xiaopeng, etc., although they also have a large reputation in the electric vehicle industry, there is still a certain gap compared with BYD, after all, BYD itself is a car manufacturing company.
New energy models have been widely accepted by consumers, and sales have soared, after seeing the demand of the market, BYD did not hesitate to start this ranks.
From the manufacture of batteries to the production of automobiles, to the research and development of new energy technology, BYD is not lagging behind at all, and gives people a sense of amazement.
At this time, what it needs most is a partner, and to completely open the market, it is certainly not enough to focus only on the domestic market, after all, in terms of electric vehicles, there is still a big gap in the international market.
The concept of new energy vehicles was originally proposed by Western countries, but the research and development has not achieved results for many years.
Our new energy models are sold overseas, and BYD also saw the opportunity to expand its business territory again, and in 2022 it acquired Jabil Electronics, a subsidiary of Jabil Inc.
With a capital of 18.5 billion yuan, it completed the acquisition of its product manufacturing business in Chengdu and Wuxi, which indicates the formal merger of the two companies.
The acquired business includes the production and manufacturing of customer parts, and with the addition of this company, BYD has a new boost in the field of electronic manufacturing.
Second, the importance of Jabil electronics
BYD as a local enterprise, the mainland people are very familiar with its sales and performance, Jabil Electronics is a Singaporean enterprise, is a professional electronic manufacturing service company.
Now the electronic manufacturing industry has high requirements for science and technology, and it is widely used, such as some household appliances and the current major models, which are highly dependent on it.
The company is privately held, listed on the New York Stock Exchange, and over the years has grown to more than 250,000 employees in more than 30 countries.
From these data, it can be seen that the scale of the company is not smaller than BYD, and the acquisition of the two can be regarded as a strong cooperation, the most important thing is that the development goals and directions of the two companies are roughly the same.
BYD is an automobile manufacturer, whether it is a new energy model or a fuel vehicle, sales are far ahead in the world, with the development of the times, the subsequent models will have higher requirements for the production and manufacturing of various electronic products.
Jabil Electronics' main business is electronic manufacturing services, design engineering and manufacturing in the consumer industry, as well as materials technical services, automation and tooling.
The supply solutions provided by the company cover a wide range of industries, and the production and service of electronic technology have been applied to daily life, and have long become an enterprise closely related to people's lives.
From the design, R&D, production and maintenance of electronic products, as well as after-sales, Jabil electronics can be said to be ubiquitous.
We often say that technology determines productivity, and Jabil Electronics is a strong player in the field of electronic manufacturing services, and has achieved excellence in many aspects such as smartphone and circuit production motherboards, electronic components, camera modules, and touch screen modules.
It also keeps up with the trend of the times, and the supply chain has achieved intelligence, which accelerates the time to market of products, and the establishment of digital solutions and global networks has made it truly in line with international standards.
From this acquisition, we can also roughly see BYD's ambitions, and it may focus on the development of the electronics manufacturing business, which can not only meet its own needs, but also provide corresponding products to other companies.
Don't underestimate Jabil Electronics, we also said above that it has branches in more than 30 countries, providing a number of jobs for the local people, and has been supported and sought after by everyone.
Therefore, the company's products have fixed sales in many countries, and the company's influence and reputation are very good.
Jabil Electronics has enterprises in Guangzhou, Beijing, Shanghai, Suzhou and other places, and has 5 modern factories and 25 branches in mainland China.
Many people found it unbelievable to see the huge amount of money spent on BYD's acquisition, but after learning about the distribution of Jabil Electronics in various places, everyone felt that BYD had made money this time.
After the completion of this acquisition, BYD will gain access to the company's expertise and technology in the field of supply chain solutions, thereby enhancing its advantages in the field of mobile electronics manufacturing, which can increase its competitiveness in the market.
3. Why did BYD do this
When you are strong enough and have an absolute advantage, others will definitely catch up with you to cooperate, in order to bring more opportunities to yourself.
The times are developing, science and technology are advancing, and almost every year electronic products are being updated and replaced, so we have been emphasizing the importance of technological innovation and upgrading.
The field of mobile electronics manufacturing may face more challenges in the future, but it is clear that it will soon become the mainstream direction of social development.
Jabil has been committed to this aspect, so it has accumulated a lot of experience, and for BYD, it has brought technological innovation and efficiency improvement, and can continue to strengthen its position in the global market.
As a world-renowned electronics manufacturing service provider, Jabil Electronics has strong R&D, production and sales capabilities, which cannot be established in a year or two.
If an enterprise wants to achieve this effect, it must invest a lot of manpower, material resources, and financial resources, and whether it can be achieved in the end is not certain, for BYD, the acquisition of the company, can quickly enhance its strength in the field of electronic manufacturing services.
Whether it was in the past or now, technology and experience are the key to a company's foothold, and the market position directly determines the final sales, which Jabil Electronics has all have, bringing huge market value to BYD.
Through this acquisition, the two companies can achieve complementary development, and BYD can further expand its share of the global electronics manufacturing market.
New energy vehicles have always been known as the sunrise industry, its sales and production are increasing, and the demand for electronic components is also in a state of continuous growth.
As a leader in new energy vehicles, BYD has to pave the way for its future development, blindly relying on other companies in electronic components, which not only increases production costs, but also is controlled by others.
After the completion of this acquisition, BYD's demand for electronic components will not have to worry at all, and if Jabil Electronics has a new product launch, BYD will have the right of first refusal. This has become its biggest competitive advantage.
Jabil Electronics has a number of factories in various countries, and the annual profit is also very considerable, with its joining, BYD has more sources of profits.
It is precisely because of this that everyone is more and more optimistic about the future of BYD, and now its market value and financing ability have improved. This also invisibly provided BYD with a fortune.
We have all heard the saying that although the relationship between enterprises is competitive, as long as the purpose of both parties is the same, cooperation will bring more benefits to them.
Through this acquisition, the two companies can optimize their supply chains and meet each other's needs, which also reduces costs and improves production efficiency to a certain extent.
For BYD, with the blessing of Jabil Electronics, it can further strengthen its control over the supply chain, give it more say in the industry, and improve its competitiveness in the global market.
It can be seen that this acquisition is the trend of the times and the necessary trend of market development, which is more beneficial than disadvantageous to both parties, which also warns other companies to look at the problem with a long-term development vision.
epilogue
Merging with Jabil Electronics, BYD's position in the international market is more stable, it is not an exaggeration to describe it as solid, and it has also increased its own strength, whether it is from a strategic perspective or from a market perspective, BYD's choice is perfect.
The two major enterprises have joined forces to promote innovation in the entire field of electronic manufacturing, and have also laid a solid foundation for enterprises to gain a foothold in the market, which is not only to find a partner for themselves, but also to make each other their backer.
While pursuing profits, major enterprises should also pay more attention to the positive impact of the market on the society, and it seems that this acquisition is a major business decision, but in fact, it has brought benefits to the country and the masses.
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