Luxshare Precision Industry, a fast-rising Chinese tech manufacturer is acquiring iPhone production business from Wistron in China. After the deal, it will be the first mainland company to win the most desired role in assembling Apple’s devices and challenging Foxconn, the world’s largest provider of electronics manufacturing services.
Luxshare was founded by former Foxconn production line worker Grace Wang in 2004. It was already the key supplier of Apple’s AirPods, which helped the company become one of the 2019’s top Asian stock performers. The company has agreed to buy two Chinese branches of Wistron for 3.3 billion yuan ($471.5 million), according to Nikkie Asian Review. Luxshare will have control of Wistron’s key iPhone assembly plant in Kushan in China’s Jiangsu province, following this deal.
Back in May, Luxshare had been in talks to acquire Catcher Technology, a supplier of metal cases and frames for the iPhone. The deal, however, didn’t go through due to Catcher’s overly high price.
Luxshare had firstly started producing cables and connectors for Apple in 2013. Later, it started AirPods and Apple Watch production as well, which required greater manufacturing skills. It’s likely that Luxshare will take over iPhone assembly in China while Wistron plans to invest in India for manufacturing.