Luxshare Reportedly Moving into iPhone Manufacturing Ahead of Schedule

Luxshare is reported to be taking the first major steps into iPhone manufacturing. The company, who plays an integral role in the assembly of Apple’s AirPods, appears to be ahead of schedule. The decision to move ahead is backed by Apple, who has been said to be moving Luxshare up the supply chain to rival Taiwanese Foxconn.

Earlier this year, Luxshare purchased an iPhone plant from supplier Wistron, igniting reports that the supplier may be moving into production of the iPhone. Apple has also been advising Luxshare to expand its production this year, in a bid to eventually rival supplier Foxconn. Now, it’s been reported by Nikkei that Luxshare is already studying the manufacturing process of the iPhone 12 Mini.

Multiple sources have stepped forward and claimed Luxshare has been working with Wistron in the production of the iPhone 12 Mini in Kunshan. It’s interesting to note that Luxshare’s purchase of Wistron’s factory has not been finalized. This appears to give credence that Apple is continuing to back the progression of Luxshare within the supply chain as Apple is typically strict on non-staff visiting manufacturing facilities. The purchase of the Wistron plant is said to be for $499 million and the deal began in July of this year.

Once it hits the ground running, Luxshare will become the fourth key supplier for Apple’s iPhone. It will join the ranks alongside Wistron, Foxconn, and Pegatron. Earlier this week, Apple had placed Pegratron on probation, ceasing any future contracts after the discovery of labour abuse within the facility. Pegatron is in charge of roughly 80 percent of the iPhone 12 Mini orders, according to sources. While Wistron’s plant manufactures the remaining 20 percent.