Patently Apple reported back in May that Apple supplier Catcher who makes metal cases for the iPhone and MacBook, was trying to move some of their production out of China due to U.S.-China tensions. It now appears that Catcher is doing just that.

Bloomberg is reporting that "Catcher Technology Co., has agreed to sell two businesses in China to Lens Technology Co., joining a cohort of Taiwanese companies in diversifying away from the country and adding production capacities elsewhere amid worsening ties between Washington and Beijing.

Lens Tech will pay cash for the two units located in the eastern Chinese city of Taizhou and the transaction is expected to be completed before the end of this year pending government approval, Catcher said in a statement.

The deal is tentatively priced at $1.43 billion and involves a plant that accounted for 40% of Catcher’s total sales in 2019, spokesman James Wu said at a briefing. The U.S.-China trade war and increasing price competition is facilitating supply chain consolidation, Wu added. Catcher still maintains some operations in China.

GF Securities analyst Jeff Pu  told Bloomberg that "Following iPhone assembler Pegatron’s acquisition of casing unit Casetek, Catcher is likely to lose its longtime partnership with Pegatron and lose market share within the Apple supply chain, so Catcher may be selling the plant to get some cash back." Pu added that the plant is responsible for assembling metal frames and glass backs of iPhones. "For Lens Technology Co, buying this plant that provides preliminary assembly service may boost the company’s chances  of winning iPhone and iPad assembly orders in the future." For more, read the full Bloomberg report.