Apple partner refuses to move to the US

Ms. Vuong Lai Xuan, standing in the middle, next to Tim Cook. Photo: Apple .

Recently, Luxshare Precision announced information on the Shenzhen Stock Exchange, China about its business orientation. "Currently, the company has no plans to build a factory in the US. The rumors are inaccurate, we reserve the right to pursue legal action," the electronics company stated.

At an online meeting with investors on April 9, Luxshare Chairwoman Wang Laichun said that shifting production to the US is not easy due to many factors. The main issues mentioned are human resources, costs, and complex supply chains. She said that only products with a high level of automation, such as semiconductors or integrated modules, can be easily moved. In contrast, the consumer electronics industry, which depends on a complex supply network, is very difficult to relocate.

This person revealed that some customers in the automotive and telecommunications sectors have proposed that Luxshare install highly automated products in the US. However, the commercial and long-term conditions are not guaranteed.

The move comes as the US continues to raise tariffs on Chinese imports. After several adjustments, the total has reached 145% as of April 11.

Luxshare Precision, currently a partner in manufacturing iPhones and AirPods for Apple, admitted that it has suffered some impact due to the trade war. However, according to Ms. Vuong, with the FOB (free on board) transaction method, businesses like Luxshare do not have to pay import tax costs because the responsibility lies with the partner, in this case Apple.

TechInsights analysis shows that the new tariffs will increase the cost of manufacturing the 256GB iPhone 16 Pro to more than $1,300 , exceeding the current selling price of $1,100 , putting heavy pressure on the entire supply chain. In addition to factories in China, Luxshare has set up production facilities in Malaysia, Thailand, Vietnam, the US and Mexico. The company is also considering expanding its investment in Southeast Asia, although it has not announced specifics.

Source: https://znews.vn/doi-tac-apple-tu-choi-di-doi-sang-my-post1545151.html