Luxshare says it is not aware of any purchase of Apple supplier Pegatron’s factory in Shanghai

(Yicai Global) 18 Nov. Chinese Apple supplier Luxshare Precision Industry has denied any knowledge of purchasing part of Taiwanese contract manufacturer Pegatron’s iPhone factory in Shanghai after an online report said it had taken over some buildings.

The securities division has not been notified of such a takeover, said Luxshare, one of US technology giant Apple’s three main assemblers, which produces smartphones, watches and headphones, as well as components such as display modules and systems-in-packages.

All major developments will be announced by the company, Shanghai Securities News reported.

Luxshare has bought several buildings from Pegatron Shanghai because some production lines were idle after Apple halted orders, the Shanghai Star Market reported on its website Nov. 16, citing former employees of the company. Many workers, especially those on hourly rates, left the Shanghai facility because there weren’t enough orders to support them, other staff members said.

Pegatron has complete iPhone assembly lines because California-based Apple has a very strict inspection process for its suppliers. Therefore, such an acquisition “would save the buyer a lot of time”, according to the employees.

It wouldn’t be the first time Luxshare, which has been expanding aggressively since joining Apple’s industrial chain in 2011, has gobbled up Pegatron’s assets. Last year, it spent CNY 6.6 billion (USD 930 million) on the purchase of four subsidiaries of the Taipei-based company.

Luxshare’s largest customer accounted for 74.1 percent of the Dongguan, South Guangdong-based company’s accounts receivable last year, up from 55.4 percent in 2019. This customer is widely believed to be Apple.

Editor: Kim Taylor

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