Apple supplier Luxshare is taking over an iPhone assembly factory from a rival manufacturer after buying a majority stake in the location.
Tim Cook visiting a Luxshare factory
Luxshare is buying a 62.5% stake in Pegatron’s Kunshan factory in eastern China. The deal, worth approximately $300 million (2.1 billion yuan), was disclosed in a recent exchange filing. Pegatron, based in Taipei, currently assembles iPhones at its Kunshan campus and another site in Shanghai.
The supplier aims to give it a competitive edge against Taiwan’s Foxconn Technology Group, Apple’s primary manufacturing partner. Foxconn currently assembles about 70% of all iPhones, primarily in central China.