Alarm Bell for Apple’s Taiwan Supply Chain

Alarm Bell for Apple’s Taiwan Supply Chain

Source: UDN

July 20, 2020

Wistron Corporation, a Taiwan investment, planned to sell its plant assembling iPhones for Apple Inc. in Kunshan, Mainland China, and related business to Luxshare Precision Industry Co., Ltd., an emerging Mainland contract manufacturer. The market was concerned that the news was an alarm bell for Apple’s Taiwan contract manufacturers. Figures inside the industry indicated that once the Investment Review Commission under the Ministry of Economic Affairs approved the sale, Luxshare would also acquire Taiwan talents and technologies, becoming a manufacturer of iPhones.

In addition, the figures indicated that if the Mainland government subsidized and supported Luxshare in the future, a price war would possibly be initiated within the contract manufacturing market of Apple’s devices, adding that whether Taiwan contract manufacturers could weather the price war would matter to the lifeblood of Taiwan’s contract manufacturing chains of Apple’s devices.

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