Iphone Factory ChinaSource: Apple

What you need to know

  • Apple continues to shake up its supply chain.
  • It is adding more China-based manufacturers for its Chinese market.
  • Luxshare and others are buying plants from Taiwanese firms.

A new DigiTimes report says that Apple is continuing to shake up its iPhone supply chain, by adding more China-based manufacturers for its Chinese market.

According to the report:

Apple seems to be looking to build a supply chain consisting of China-based makers for iPhones specifically for the Chinese market. Chinese maker Luxshare has already taken manufacturing plants in China from Taiwan's Wistron. Luxshare and another Chinese company, Lens Technology, are reportedly also looking to buy metal chassis plants from Taiwanese firms, as they seek to expand their presence in the iPhone ecosystem with approval from Apple.

As noted in the report, China-based manufacturers Luxshare and Lens Technology will purchase plants from Taiwanese firm Wistron, seemingly at Apple's behest. It continues:

Apple is seemingly continuing to recruit more Chinese suppliers for iPhones, judging from Chinese EMS provider Luxshare Precision Industry and handset cover glass maker Lens Technology's aggressive moves seeking to acquire metal chassis plants operated in China by Taiwan-based makers, reportedly under the nod from the US vendor, according to industry sources.

The news of a Luxshare Precision deal was previously announced last month. Already a key supplier of AirPods to Apple, Luxshare is now part of Apple's wider plan to diversify its supply chain, which has previously been dominated by Taiwanese companies.

Seemingly, this latest DigiTimes report shows Apple is keen to add even more Chinese manufacturers to the fold. The seller, Wistron, has already passed on two of its subsidiaries and one assembly plant in the city of Kushan to allow it to focus more on Apple's manufacturing base in India. Apple has recently begun manufacturing of some iPhones there, including the iPhone 11 to help bypass heavy import duties on goods shipped into India. It marks the first time Apple's flagship iPhone has been made outside of China.