Luxshare building massive new iPhone factory to challenge Foxconn

Posted:
in General Discussion
Apple supplier Luxshare Precision is building a "mega-plant" in China to boost its iPhone assembly capabilities and challenge Taiwanese rivals like Foxconn and Pegatron.

Tim Cook at assembly plant
Tim Cook at assembly plant


The company is reportedly building a 285-000-square-meter manufacturing facility in Kunshan City, China, Nikkei reported Wednesday. It plans to complete the first phase of the new manufacturing park in the middle of 2022, and could produce iPhone models sometime that year.

Luxshare invested $1.73 billion into the project, which will help it meet its goal of significantly boosting its iPhone assembly capabilities. The company hopes to increase its volume from 6.5 million units to 12 million to 15 million units as soon as 2022.

Along with the new manufacturing park -- which spans 40 football fields -- Luxshare also leased and renovated a nearby plant previously owned by iPad assembler Compal.

The announcement could foreshadow a shake-up in Apple's supply chain, which is increasingly moving assembly from Taiwan to China. Earlier in 2021, nearly one-third of companies Apple that added to its supply partners lists were located in mainland China.

Apple currently relies on Taiwanese firms like Foxconn and Pegatron for the majority of its iPhone assembly. Foxconn assembles about 60% of the company's smartphones, with Pegatron accounting for 30%.

The tides could be changing, however. Luxshare also assembles Apple's popular AirPods. Earlier in 2021, the company won a contract to build around 3% of Apple's iPhone 13 models.

Apple has come under fire in recent years for its reliance on Chinese companies and manufacturing capabilities. In May 2021, a group of U.S. lawmakers urged Apple to exit China, citing the company's concessions to the Chinese government, among other reasons.

Read on AppleInsider

Comments

  • Reply 1 of 16
    To me that is really concerning. I thought the idea was to move OUT of China not move IN. It's a pity that Apple cannot structure itself in a way that is less reliant on Chinese manufacturing but it is actually working towards strengthening its ties there. To me as a consumer for both political as well as security reasons it's becoming more and more important to choose products that are manufactured in a country with at least a decent respect of human rights. Just a pity! 
    Weetumaltzwilliamlondontmaydope_ahmineentropys
  • Reply 2 of 16
    MacProMacPro Posts: 19,471member
    rccrd said:
    To me that is really concerning. I thought the idea was to move OUT of China not move IN. It's a pity that Apple cannot structure itself in a way that is less reliant on Chinese manufacturing but it is actually working towards strengthening its ties there. To me as a consumer for both political as well as security reasons it's becoming more and more important to choose products that are manufactured in a country with at least a decent respect of human rights. Just a pity! 
    Given the size of the Chinese market, it is probably a good idea since worst case, it can supply that market if nothing else.  What happens if China bans imports from Taiwan should that conflict grow?
    edited December 2021 williamlondon
  • Reply 3 of 16
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    GeorgeBMac
  • Reply 4 of 16
    chadbagchadbag Posts: 1,647member
    MacPro said:
    rccrd said:
    To me that is really concerning. I thought the idea was to move OUT of China not move IN. It's a pity that Apple cannot structure itself in a way that is less reliant on Chinese manufacturing but it is actually working towards strengthening its ties there. To me as a consumer for both political as well as security reasons it's becoming more and more important to choose products that are manufactured in a country with at least a decent respect of human rights. Just a pity! 
    Given the size of the Chinese market, it is probably a good idea since worst case, it can supply that market if nothing else.  What happens if China bans imports from Taiwan should that conflict grow?
    Well , the "Taiwanese" assemblers don't actually assemble in Taiwan.  They assemble in China, so any ban on Taiwan imports wouldn't affect stuff assembled in China, though it could affect the import of SoC and other  chips actually made in Taiwan, which is a problem even with China based assemblers.  
    edited December 2021 tokyojimuwilliamlondondewme
  • Reply 5 of 16
    chadbagchadbag Posts: 1,647member
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    williamlondondope_ahmineGeorgeBMac
  • Reply 6 of 16
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    williamlondon
  • Reply 7 of 16
    chadbagchadbag Posts: 1,647member
    Kuyangkoh said:
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    Never said they couldn't.  My point is that this is not proof of that since they've been made in China for years now.  
    williamlondon
  • Reply 8 of 16
    chadbag said:
    Kuyangkoh said:
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    Never said they couldn't.  My point is that this is not proof of that since they've been made in China for years now.  
    iPhone has been assembled in other nations before including Brazil, India, and probably Vietnam. 
  • Reply 9 of 16
    chadbagchadbag Posts: 1,647member
    chadbag said:
    Kuyangkoh said:
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    Never said they couldn't.  My point is that this is not proof of that since they've been made in China for years now.  
    iPhone has been assembled in other nations before including Brazil, India, and probably Vietnam. 
    And?  That is totally irrelevant to my comment and the one I was replying to.  Besides the fact that most iPhones are made in China anyway, the fact that some also get made outside China is irrelevant to the claim that a mainland Chinese company producing iPhones in China somehow means China is *now* able to produce high tech items as good as western countries.  No one disputes that they are or aren't able to manufacture precision items -- they've been doing it for years.  Even if the company who owns the factories up to now have been Taiwanese companies; the fact is the factories are in mainland China and the workers citizens thereof.  China has been producing precision high tech stuff since long before this new factory will start.   Including iPhones.  The difference is where the profits end up. 
    williamlondondope_ahmine
  • Reply 10 of 16
    chadbag said:
    chadbag said:
    Kuyangkoh said:
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    Never said they couldn't.  My point is that this is not proof of that since they've been made in China for years now.  
    iPhone has been assembled in other nations before including Brazil, India, and probably Vietnam. 
    And?  That is totally irrelevant to my comment and the one I was replying to.  Besides the fact that most iPhones are made in China anyway, the fact that some also get made outside China is irrelevant to the claim that a mainland Chinese company producing iPhones in China somehow means China is *now* able to produce high tech items as good as western countries.  No one disputes that they are or aren't able to manufacture precision items -- they've been doing it for years.  Even if the company who owns the factories up to now have been Taiwanese companies; the fact is the factories are in mainland China and the workers citizens thereof.  China has been producing precision high tech stuff since long before this new factory will start.   Including iPhones.  The difference is where the profits end up. 
    You ignored my word cheaply to make your generalization. Many nations can manufacture iPhone with high quality standard but they cannot do it as cheaply and efficiently as Chinese companies. I added the word efficiently. I think you have no idea what cheaply and efficiently mean in manufacturing. 
    GeorgeBMac
  • Reply 11 of 16
    crowleycrowley Posts: 10,003member
    chadbag said:
    chadbag said:
    Kuyangkoh said:
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    Never said they couldn't.  My point is that this is not proof of that since they've been made in China for years now.  
    iPhone has been assembled in other nations before including Brazil, India, and probably Vietnam. 
    And?  That is totally irrelevant to my comment and the one I was replying to.  Besides the fact that most iPhones are made in China anyway, the fact that some also get made outside China is irrelevant to the claim that a mainland Chinese company producing iPhones in China somehow means China is *now* able to produce high tech items as good as western countries.  No one disputes that they are or aren't able to manufacture precision items -- they've been doing it for years.  Even if the company who owns the factories up to now have been Taiwanese companies; the fact is the factories are in mainland China and the workers citizens thereof.  China has been producing precision high tech stuff since long before this new factory will start.   Including iPhones.  The difference is where the profits end up. 
    You ignored my word cheaply to make your generalization. Many nations can manufacture iPhone with high quality standard but they cannot do it as cheaply and efficiently as Chinese companies. I added the word efficiently. I think you have no idea what cheaply and efficiently mean in manufacturing. 
    Dude, no one is disagreeing with that.  The only disagreement is that this news provides any new insight compared to the day before.  Everyone acknowledges that China are at the forefront for cheap manufacturing that can scale and deliver quality.

    Stop being so thickheaded in your constant crusade to spread the word of the PRC's supremacy please.
    edited December 2021 chadbagmuthuk_vanalingam
  • Reply 12 of 16
    chadbagchadbag Posts: 1,647member
    crowley said:
    Dude, no one is disagreeing with that.  The only disagreement is that this news provides any new insight compared to the day before.  Everyone acknowledges that China are at the forefront for cheap manufacturing that can scale and deliver quality.

    Stop being so thickheaded in your constant crusade to spread the word of the PRC's supremacy please.
    This.   This is my whole point.   China was already doing this.  Nothing changed except  the Corp HQ address is not Taiwan.  
    williamlondonmuthuk_vanalingamcrowleyGeorgeBMac
  • Reply 13 of 16
    GeorgeBMacGeorgeBMac Posts: 11,421member
    rccrd said:
    To me that is really concerning. I thought the idea was to move OUT of China not move IN.
    ,,,

    That's the idea of some -- mostly the brainwashed.
  • Reply 14 of 16
    GeorgeBMacGeorgeBMac Posts: 11,421member
    MacPro said:
    rccrd said:
    To me that is really concerning. I thought the idea was to move OUT of China not move IN. It's a pity that Apple cannot structure itself in a way that is less reliant on Chinese manufacturing but it is actually working towards strengthening its ties there. To me as a consumer for both political as well as security reasons it's becoming more and more important to choose products that are manufactured in a country with at least a decent respect of human rights. Just a pity! 
    ...
    What happens if China bans imports from Taiwan should that conflict grow?

    That's unlikely -- unless the U.S. continues to support Taiwanese insurrection.
    In that case, China will won't boycott them, they'll just take over the island.  They've been very clear on that point.
  • Reply 15 of 16
    GeorgeBMacGeorgeBMac Posts: 11,421member
    crowley said:
    chadbag said:
    chadbag said:
    Kuyangkoh said:
    chadbag said:
    This proves that Chinese companies are able to manufacture Apple products with high quality cheaply that other nations cannot do. 
    This does not prove that since the assembly of the phones has been in China this whole time anyway.  This just changes the Corp address of the HQ to China for those phones.
    It has been proven all along that China can produce products that are specs correctly by any companies such as US, Japan and Korea. All others that are knock off or un branded should be avoided…. 
    Never said they couldn't.  My point is that this is not proof of that since they've been made in China for years now.  
    iPhone has been assembled in other nations before including Brazil, India, and probably Vietnam. 
    And?  That is totally irrelevant to my comment and the one I was replying to.  Besides the fact that most iPhones are made in China anyway, the fact that some also get made outside China is irrelevant to the claim that a mainland Chinese company producing iPhones in China somehow means China is *now* able to produce high tech items as good as western countries.  No one disputes that they are or aren't able to manufacture precision items -- they've been doing it for years.  Even if the company who owns the factories up to now have been Taiwanese companies; the fact is the factories are in mainland China and the workers citizens thereof.  China has been producing precision high tech stuff since long before this new factory will start.   Including iPhones.  The difference is where the profits end up. 
    You ignored my word cheaply to make your generalization. Many nations can manufacture iPhone with high quality standard but they cannot do it as cheaply and efficiently as Chinese companies. I added the word efficiently. I think you have no idea what cheaply and efficiently mean in manufacturing. 
    ...

    Stop being so thickheaded in your constant crusade ...
    You might consider taking your own advice.

  • Reply 16 of 16
    cg27cg27 Posts: 168member
    This is probably nothing more than Apple following through on the $275B (or thereabouts) investment agreement over 10 years with China.
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