May 1, 2024

Luxshare is Building a Massive New iPhone Assembly Plant in China

Posted December 23, 2021 at 1:44am by iClarified · 4363 views
Luxshare Precision Industry is building a massive new iPhone assembly plant in China - with Apple's blessing - to rival Foxconn and Pegatron, reports Nikkei Asia.

Luxshare, China's most prominent player in the Apple supply chain, is building a 285,000 sq. meter manufacturing park in Kunshan, Jiangsu Province, with a total investment of 11 billion yuan ($1.72 billion). The sprawling site -- covering an area the size of 40 football fields -- will churn out millions of iPhones as early as next year.



According to documents obtained by Nikkei, Luxshare is set to complete the first phase of the complex around mid-2022. It aims to raise its share of iPhone assembly from 6.5 million units in 2021 to 12-15 million units by near year. Currently, Apple ships about 200 million iPhones a year. Foxconn assembles around 60% of devices and Pegatron around 30%.

"I went on a business trip nearby and saw Luxshare's new manufacturing complex. I am shocked by the scale of the complex and the possible capacity it could build for iPhones," an Apple supplier executive told Nikkei Asia. "The day it threatens Foxconn and Pegatron might arrive earlier than people's estimate judging from the progress of the new facility."

In addition to the complex, Luxshare has leased and remodeled a nearby facility previously owned by Compal.

More details in the full report linked below...

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