China's Luxshare is building a Mega iPhone Plant in Eastern China to challenge Foxconn and Pegatron's Monopoly on iPhone Production
According to new Nikkei Asia report, Luxshare Precision is building a large-scale production base in eastern China. With Apple’s support, its goal is to break the decade-long monopoly on iPhone assembly held by Taiwanese rivals Foxconn and Pegatron.
According to the report, Luxshare Precision is building a 285,000-square-meter manufacturing park in Kunshan City, covering an area equivalent to 40 football fields, with a total investment of RMB 11 billion (US$1.73 billion). It will start assembling millions of iPhones as soon as next year.
Luxshare plans to complete the first phase of the new park around the middle of next year. According to people familiar with the matter, Luxshare’s goal is to rely on this new factory to significantly increase the proportion of iPhone assembly.
In fact, it hopes to increase the assembly volume of iPhone from 6.5 million units this year to 12-15 million units as soon as next year. Eventually there will be a 39 unit production line. In addition to the new park, Luxshare Precision also leased and rebuilt a nearby factory previously owned by iPad assembler Compal.
In other supply chain news, the report noted that China's "Lens Technology" will also provide a metal case for the iPhone for the first time this year. Previously, they only provided glass panels and cover glass for Apple.
Lastly, Nikkei Asia reports that Sunny Optical Technology, the largest domestic smartphone camera lens manufacturer, has also entered Apple's supply chain, supplying a small amount of rear camera lenses.