Reuters: ‘Apple Supplier Luxshare Unnerves Foxconn as U.S.-China Feud Speeds Supply Chain Shift’

Yimou Lee and Josh Horwitz, reporting for Reuters, two days before The Information’s aforelinked report alleging the souring of Apple’s relationship with Foxconn:

Apple’s top iPhone assembler, Taiwan-based Foxconn, has set up a task force to fend off the growing clout of Chinese electronics manufacturer Luxshare, which it believes poses a serious threat to its dominance, three sources with knowledge of the matter said.

The project was initiated by Foxconn’s founder Terry Gou, according to one of the sources, to target Dongguan-based Luxshare, which is little-known internationally but is poised to become the first mainland China-headquartered firm to assemble iPhones — a turf until now dominated by Taiwanese manufacturers.

The task force, which the sources say was created last year, has been looking into Luxshare’s technology, expansion plan, hiring strategy and whether the company — which currently makes only 5% of Foxconn’s revenue — is supported by any Chinese government entity.

I would think Apple would want to detangle its manufacturing from China, not entangle it further, but this might show how large China’s advantages are in this world.

Wednesday, 28 October 2020