Kingston, the world's No. 1 supplier of retail memory modules and storage devices, has formed a joint venture with Longsys Electronics to operate in China. The move will combine the strengths of Kingston and Longsys, and lower risks for the former. In addition, the partnership will better address the Chinese retail memory market and avoid any potential problems caused by the U.S.-China tensions.
Under the terms of the deal, Kingston will hold a 49% stake in the joint venture, whereas Longsys will own the majority with a 51% stake. The joint venture will function as an independent entity with full corporate governance and management capabilities. Its focus will be on offering 'diverse and high-end embedded storage solutions' to customers in mainland China. The joint venture will handle its own product planning, R&D management, supply chain management, and sales. Meanwhile, Longsys will conduct R&D and technical support, whereas Kingston will be responsible for core resource procurement and branding.
