Apple iPhone assembler, Foxconn, has recently set up a new task force to fend off the growing influence of Chinese electronics manufacturer, Luxshare, that has threatened its dominance, as per sources close to the matter.
According to a Reuters report, the project has initiated by Foxconn Founder Terry Gou to target China’s Luxshare. The latter isn’t a known international brand but has become the first firm to have a Mainland China headquarters to assemble iPhones, which is an area that was dominated by Taiwanese manufacturers like Foxconn. One of the sources claimed that the task force was created back in 2019 and has been looking into Luxshare’s technology, expansion plan, hiring, and whether the company is supported by any Chinese government entity as well.
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At the moment, Luxshare only makes 5 percent of Foxconn’s total revenue. Despite this, it is still being considered a notable threat. Furthermore, the growing tensions amid the US-China trade war and the ongoing Coronavirus pandemic have intensified pressures on the global supply chains.
This has led to an increase in tech feuds between nations, with each trying to create the next world leading local tech giant. As per another source, “Luxshare is set to rise … it’s just a matter of how fast it could be.” The source further added that “It makes sense for China to build up its own supply chain and Luxshare is in line with that state policy.”
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