Apple Supplier Luxshare Considers US Shift for Automated Production Amid Tariff Tensions

Luxshare Considers US Shift for Automated Production

Luxshare, an Apple supplier known for assembling select iPhone models and producing AirPods and Apple Watch, is contemplating moving some production outside China, including to the United States. This decision is driven by the tariffs imposed by former President Trump.

Current Operations

• Luxshare has factories and research centers in China, Malaysia, Thailand, Vietnam, and the United States.
• The company exports a small amount of finished products to the U.S., which minimizes the impact of tariffs on profits and revenue.

Future Plans

• Co-founder Wang Laichun mentioned that the company would consider localizing production for the U.S. market if there is a commercial guarantee and favorable long-term development and safety considerations.
• Any investment in North America would focus on products with a significant degree of automation, which could take 1 to 1.5 years to set up where existing facilities are already present.
• Luxshare also plans to increase investments in Southeast Asia.

Tariff Impact

• Hardware manufacturers have not borne the cost of tariffs or logistics warehousing.
• There are concerns that customers might seek lower prices due to tariffs, but suppliers and customers typically collaborate to enhance competitiveness.