(Yicai) June 18 -- The Chinese arm of US chipmaker Intel has acquired a stake in a subsidiary of Luxshare Precision, a leading assembler of Apple products, reportedly with the intention of cooperating in the communications field.

Intel China recently became a new shareholder of Dongguan Luxshare Technology, data on corporate information site Qichacha showed yesterday. Luxshare Tech's registered capital rose by CNY17 million (USD2.3 million) to CNY589 million (USD81.2 million), but Intel's investment was not provided.

The tie-up will mainly focus on communications and does not involve consumer electronics, Securities Times reported on the same day, citing a source familiar with the matter. Luxshare's related products will be deeply integrated with Intel chips, the person noted, adding that the pair will work together closely on development.

Transmission rates and bandwidth are strongly linked to the chips uses, according to industry insiders. The partnership will help raise the competitiveness of Luxshare Tech’s communication and data center products and aid the business's quick development, they added.

Amid escalating geopolitical tensions, Intel's investment will further help Luxshare Tech enter the North American server market, especially artificial intelligence server-related businesses, National Business Daily reported yesterday, citing an insider from the supply chain.

Shenzhen-based Luxshare has increased its spending on AI servers and related technologies in recent years. 

AI server parts require long research and development times and steep inputs, with the technological bar broadly higher than for consumer electronic parts, but Luxshare Tech will be a key source of future profits, Wang Laichun, Luxshare's chairwoman and general manager, said in April.

Luxshare set up Luxshare Tech in 2017 and owns 89 percent of the firm. The parent company's communication and precision parts include connectors and cables, communications radio frequency, optical interconnect, thermal management, and power supply.

Operating revenue from this business rose 13 percent to CNY14.5 billion (USD2 billion) in the 12 months ended Dec. 31 from a year earlier, accounting for 6.3 percent of the total.

Editor: Martin Kadiev