Luxshare to become second-largest iPhone manufacturer behind Foxconn
Luxshare is deepening its ties with Apple. According to Nikkei Asia, the Chinese manufacturer is set to become the world's second-largest iPhone assembler after taking over the majority of business from Pegatron's plant in Kunshan (China).
With that, Luxshare is only behind Foxconn, although the Chinese company is really betting on Apple, as it's also the sole manufacturer of Apple Vision Pro, Apple's upcoming spatial computer, set to be released in early 2024.
According to Nikkei, Pegatron announced that Luxshare is investing $296 million into the Kunshan plant as a capital expansion. With that, Pegatron's stake at the facility will drop from 100% to 37.5%, and it will assume control of the plant, making Luxshare the world's second-largest iPhone assembler.
"In response to the dynamic market and industrial environment, and to strengthen the regional manufacturing efficiency, Pegatron expects to reallocate resources more effectively by having a joint venture with the strategic investor through the capital injection, resulting in balanced regional deployment and stronger competitiveness," Pegatron told Nikkei Asia in a statement.
That said, it doesn't mean Pegatron will stop making iPhones. In fact, the Taiwanese company might actually aim to reinvest this money in other facilities as it continues expanding its business in India. Previous reports say Apple aims to produce 25% of iPhones in India in the next two to three years, so it's smart that Pegatron is investing where Cupertino is currently focusing.
On the other hand, while Pegatron is thriving in India, Nikkei reports that Luxshare is struggling to set up iPhone production there due to the worsening China-India relations.
While Foxconn is Apple's leading iPhone manufacturer, Luxshare is the company's most important supplier, making iPhones, AirPods, Apple Watches, HomePods, and the upcoming Apple Vision Pro.
BGR will keep following the latest news on Apple's suppliers.
The post Luxshare to become second-largest iPhone manufacturer behind Foxconn appeared first on BGR.
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Luxshare to become second-largest iPhone manufacturer behind Foxconn originally appeared on BGR.com on Thu, 28 Dec 2023 at 11:38:43 EDT. Please see our terms for use of feeds.