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1.5.24 – SIW – John DobbersteinPaul Rothman

In a letter to dealers and distributors, the company said it will transfer ownership of its North American business to a Taiwanese-owned company to better enable it to do business in the U.S.

Dahua Technology says it’s selling its North American division, Dahua Technology USA, to a “reputable” Taiwan-based manufacturer, ending a controversial saga for the China-based security manufacturer as it fell into disfavor with U.S. regulators. 

In a letter to dealers and distributors obtained by SecurityInfoWatch.com, Lin Kun-Huang, Director of Dahua Technology USA, said North America had long been an important market but Dahua is making a 100% ownership change to “ensure an unwavering commitment to our customers and secure a foundation for long-term growth in the North American market.” 

The letter identified the buyer as Luminys Systems, believed to be a subsidiary of Taiwanese company Foxlink. According to its website, Foxlink designs, manufactures and sells connectors, cable assemblies, power management devices and battery packs on an OEM/ODM basis to some of the world’s leading makers of communications devices, computers and consumer electronics.

In business since 1986, officials say Foxlink and its subsidiaries “have successfully developed diversified products in the area of wireless communications and optical technology, targeting to provide customers the total solution from components to turnkey products with highest quality.”

According to public filings, Foxlink reported 2022 revenue of $94 billion NTD, with 34,000 employees worldwide and about 15 design, manufacturing and sales sites worldwide. Foxlink Chairman TC Gou is listed as the president of Luminys Systems. 

“We are proud of the work we’ve done to provide our industry-leading security solutions to our end users here,” Kun-Huang wrote. “Even more so, our relationship with the dealers of our products has allowed us to deliver our innovative products and services to customers throughout North America to make it a safer and more secure place.” 

The change itself, he wrote, will have no impact on product dealers and they will receive continuous tech support. The sales team at Dahua will not change, and all points of contact and sales channels will remain the same, he said.  “You will not need to learn or adapt to new processes, and your business as a dealer will be uninterrupted. 

“The change allows us to expand our distribution channel with an American-owned brand, introducing a wide variety of products to serve dealers and users in the North American market.”

When asked for further comment, a Dahua spokesperson told SecurityInfoWatch that “the letter speaks for itself.”