Chinese automaker BYD said its electronics unit has struck a deal with US-based manufacturer Jabil Inc to buy its mobility business in China for 15.8 billion yuan ($2.2 billion).

The deal will expand BYD Electronic’s customer base, product portfolio and its smartphone components business as it looks to capture Jabil’s potential growth in the sector.

Jabil Circuit, which is based in Singapore and manufactures printed circuit boards, established a unit this month with product manufacturing business in Chengdu and Wuxi, which will now be sold to the Chinese group.

Shares in BYD Electronic fell as much as 9% in Hong Kong on Monday but reversed losses and were up 1.4% by the midday break. The Hong Kong-listed stock of its parent BYD was up 2.2%.

Although now best-known for its electric vehicle business, BYD started out by selling electronic components. In 2007, BYD listed its BE unit on the Hong Kong Stock Exchange.

BE’s major business has been selling electronic components for consumer electronics products such as smartphones and laptops. This was one of three key business segments for BYD Electronic, accounting for more than 70% of its total revenue in 2022.

Jabil in a statement said if the deal is completed, the definitive agreement would enable it to “enhance our shareholder-centric capital framework, including incremental share buybacks,” chief executive Kenny Wilson said.

The deal will allow Jabil to further invest in “electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets,” Wilson added.

Jabil Circuit works with companies in healthcare, telecommunications, computing and storage, with an aim to drive supply chain intelligence, according to its website.

BYD first entered the car industry in 2003 when it acquired Nanjing-based automaker Qin Chuan, which held a permit for car manufacturing. It launched its first car model three years later.