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The Chinese factory challenged Foxconn to build an iPhone factory with an annual output of 15 million units

Speaking of Apple mobile phones, presumably many Chinese are not unfamiliar with it, because with the launch of Apple's latest iPhone 13 series, it can be described as very popular in the Chinese market, and even sales once surpassed domestic mobile phone brands. This has a lot to do with the fact that Huawei is suppressed by the United States and cannot get high-end chips. However, those who understand Apple's industrial chain know that the company has multiple foundry factories around the world.

The Chinese factory challenged Foxconn to build an iPhone factory with an annual output of 15 million units

Especially in Asia, it can be called the "base camp" of Apple's mobile phone processing, in Apple's many foundry factories, Foxconn should be able to be regarded as the leader, and it can even be said that the factory has been mainly for Apple processing. What I didn't expect was that with the performance of the Chinese market during the epidemic, apples that had previously planned to focus on OEM processing in Southeast Asia had to return to China. However, as Foxconn exposed more and more drawbacks, it also made many Chinese factories decide to challenge it, and even to break foxconn's monopoly. Among them is a company called Luxun Precision, which is reported to have been established in 2004 and its industrial chain involves connectors, connecting wires, motors, wireless charging, antennas and other fields. At the same time, in order to break the monopoly of Foxconn, Lixun Precision plans to build an industrial park covering an area of about 280,000 square meters in Kunshan City, Jiangsu Province, equivalent to the size of four football fields, with a total investment of about 11 billion yuan.

The Chinese factory challenged Foxconn to build an iPhone factory with an annual output of 15 million units

It is worth noting that in October this year, Luxun Precision carried out a new factory groundbreaking ceremony, according to the current project progress, in the middle of 2022, the new factory can be put into use. In addition, Luxshare Precision also leased another factory nearby to achieve the purpose of increasing production. According to this trend, once Luxshare Precision has a new factory, the iphon production capacity of this factory will jump from 6.5 million units per year to about 12 million units per year to about 16 million units per year. At present, Apple's annual mobile phone production capacity demand is about 200 million units, of which about 60% is produced by Foxconn and the remaining 30% is completed by Pegatron. However, with the construction of a new factory by Luxshare Precision with great fanfare, it means that it is no longer the world of Foxconn and Pegatron, at least Luxshare Precision is also involved in Apple processing. More importantly, at present, China's Wingtech Technology has also entered the Apple supply chain, and won the order for mac mini and Apple TV, and even Apple has included BOE in the list of display suppliers.

The Chinese factory challenged Foxconn to build an iPhone factory with an annual output of 15 million units

This shows that after Apple returned to China, it found that the strength of many Chinese factories has been greatly improved compared with before, and it can even be considered that in the level of OEM processing, it is not inferior to Foxconn. Cook, on the other hand, is a businessman and is naturally reluctant to put a large number of eggs in one basket. Therefore, with the construction of a large-scale iPhone assembly plant by Luxshare Precision, the annual output is expected to reach 15 million units. At that time, Foxconn still wants to continue to monopolize this field, which can be said to be unrealistic. Of course, the rapid development of Luxshare Precision has also attracted the attention of the United States and investigated it.

The Chinese factory challenged Foxconn to build an iPhone factory with an annual output of 15 million units

However, according to the information revealed by Luxshare Precision, this move does not affect the company's construction of factories, and even will not affect the oem processing for Apple. Therefore, Foxconn's life in Chinese mainland after that is not good, and Luxshare Precision is likely to become a strong opponent of Foxconn. It is not difficult to understand why Apple decided to cooperate with Luxshare Precision.

(Text/Hua Qiang)

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