Luxshare Precision Industry, a prominent Chinese electronics manufacturer and key supplier for Apple, is evaluating strategies to mitigate the impact of recent U.S. tariffs, including establishing facilities in the United States (via Reuters).
Despite the imposition of new tariffs, Chairwoman Wang Laichun indicated that the immediate effect on Luxshare’s profits and revenues is minimal, given the company’s limited exports of finished products directly to the U.S. However, she acknowledged the necessity of reconsidering domestic expansion plans to align with the shifting trade environment.
Luxshare is actively engaging with its clientele to assess the feasibility of relocating segments of its automated production to North America. Wang emphasized that such moves would depend on securing commercial assurances and conducting comprehensive evaluations.
In addition to potential U.S. expansion, Luxshare is contemplating increased investments in Southeast Asia, particularly in Vietnam, which boasts a well-established industrial infrastructure.
While there are currently no definitive plans to extend operations to India, Wang noted that Luxshare remains open to such possibilities should clients express specific requests. She also highlighted the typical timeframe of 12 to 18 months required to establish and operationalize new production lines in existing facilities.
Addressing concerns about the financial implications of tariffs, Wang pointed out that hardware manufacturers traditionally do not absorb costs associated with tariffs or logistics. This suggests that such expenses may ultimately be passed on to consumers or shared among supply chain partners.
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