AirPods maker Luxshare buys iPhone production plant for $472 million
AirPods assembler Luxshare Precision has purchased an iPhone production plant in Kushan, south China in a deal worth 3.3 billion yuan, roughly $471.5 million, according to Nikkei Asian Review.
The report claims Luxshare purchased Chinese subsidiaries of Wistron, with the aim of rivalling Foxconn to become a key iPhone supplier for Apple.
Luxshare Precision has been a contract manufacturer for Apple since 2013, focusing on producing Apple Watch, AirPods cables, connectors and accessories for iPhone, iPad and Mac.
According to leading Apple analyst Ming-Chi Kuo, Luxshare Precision could become a key iPhone case component manufacturer by the second half of 2021, saying the supplier will initially produce older iPhone models for Apple as it gets to grips with iPhone assembly.
Wistron has been an iPhone manufacturer itself since 2015, with facilities in China and India. According to Nikkei, Apple has asked that Wistron shared some of its iPhone production expertise with Luxshare as part of the deal.