DigiTimes released a report today, emphasizing that Apple is working hard to establish a supply chain composed entirely of Chinese manufacturers in order to produce iPhones specifically for the Chinese market.
This assessment is based on the recent move of Apple suppliers Luxshare Precision and Lens Technology to actively acquire Taiwanese manufacturers to operate metal casing factories in China. According to reports, Apple has been pushing for this approach.
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As the largest assembler of AirPods, Luxshare Precision has recently joined the iPhone assembly industry chain and acquired a low-end iPhone production line in mainland China from Taiwan Wistron.
In order to further expand its influence in the iPhone supply chain, Luxshare Precision has also been keen to acquire metal case production plants in Mainland China from Taiwanese companies in the iPhone supply chain.
Taiwanese metal casing manufacturer Catcher Technology had planned to sell 30% of its mainland China factory to Luxshare Precision, but according to sources from DigiTimes, Luxshare Precision began to acquire Casetek Holdings, a subsidiary of Pegatron. After its negotiations with the metal casing factory in mainland China, negotiations on the transaction were suspended.
Catcher Technology is still negotiating with Chinese mobile phone cover glass manufacturer Lens Technology on the sale of its Suzhou factory to a Chinese manufacturer, but the transaction has encountered obstacles in the purchase price.
This move is considered part of Apple’s efforts to recruit more Chinese suppliers, as these suppliers can provide lower cost iPhone parts for the Chinese market. Such transactions are increasingly seen as part of Apple’s overseas production base diversification plan.
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