Accton Technology Announces Strategic Move with Digital China Group to Reshape Market Presence in China

[Hsinchu, Taiwan] – September 26, 2024 – Accton Technology (TWSE:2345)

Today announced a strategic partnership with Digital China Group (000034.SZ) to integrate their capabilities across manufacturing, product development, and sales channels. This collaboration represents a key milestone in enhancing high-quality manufacturing services and driving the development of next-generation high-speed network solutions.

The partnership aims to leverage the combined strengths of both companies to unlock new opportunities in technologies, customer segments, and business models. This joint effort will enable both companies to quickly adapt to evolving technological demands, particularly in the high-performance computing and high-speed network sectors fueled by advancements in artificial intelligence.

As part of the alliance, Accton and Digital China Group will establish a new entity, MuXi Networks Ltd *. This was approved during Accton’s Board of Directors meeting on September 26, 2024. Under the terms of the agreement, Accon will sell all shares of its subsidiaries, Joy Technology (Shenzhen) Co., Ltd. and Accton Technology China Co., Ltd., to MuXi Networks. In return, Accton will receive a 40% equity stake in MuXi Networks. This strategic initiative is intended to strengthen the joint venture’s ability to meet the rapidly growing demand for innovative technologies across mainland China.

＊“MuXi Networks Ltd.” is a provisional name, subject to final registration.