Luxshare, one of the Apple suppliers, is building an enormous new iPhone factory in China. The new factory would help boost its iPhone assembly capabilities to better rival other suppliers like Foxconn and Pegatron.
According to a Nikkei Asia report (Via AppleInsider), the supplier of the Cupertino based giant is apparently setting up a massive 285,000 square meter manufacturing facility in Kunshan City, China. Furthermore, the firm plans to complete the first phase of the new giant site in the middle of next year and production of iPhone models could begin sometime later in the same year. Luxshare is investing a sizeable 1.73 billion US Dollars in this project.
Through the new plant, the company would be able to boost its iPhone assembly even further, with its volume production expected to rise from 6.5 million units to 12 million or even 15 million units by 2022 end. To put things into perspective, the new manufacturing park spans a whopping 40 football fields. Notably, Luxshare has also leased and renovated a nearby plant that was previously owned by an iPad assembler.
With the announcement of this huge plant, Apple’s supply chain might see a major shift as iPhone assembly is seeing a move from Taiwan to China. Earlier this year, Chinese partners accounted for around 33 percent of all the new suppliers that Apple added to its supply chain list. As of right now, the company relies on Taiwanese suppliers like Foxconn and Pegatron for the majority of its iPhone assembly, with the former being responsible for 60 percent of the smartphones and the latter accounting for around 30 percent.
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