Thanks to Tim Cook's secret (well, not anymore) $275 billion deal with China, Apple used Chinese manufacturer Luxshare to build some iPhone units replacing Taiwan's Foxconn.
If there is one country that Apple is heavily relying on, it is Taiwan. In addition to having Taiwan-based firms like Foxconn, Wistron, and Pegatron build its important devices, Apple is the largest customer of Taiwan Semiconductor Manufacturing Company , the foundry that builds the chips used in Apple products. There is some concern that China might seek to"takeover" Taiwan.
But does Apple have anything to worry about here? After all, $275 billion goes a long way and that payment seems to have provided Apple with special favors and could protect the company even in the unlikely event that China attempts to take control of Taiwan and the country's tech manufacturers.
Apple also agreed to use more components from Chinese suppliers, sign deals with software firms in the country, make direct investments in Chinese tech companies, work on research with universities based in China, train the country's most talented tech workers, and more. And this is where Luxshare comes in.
At the time that Reuters made its report in 2020, one of its sources said,"Luxshare is set to rise ... it’s just a matter of how fast it could be. It makes sense for China to build up its own supply chain and Luxshare is in line with that state policy."Get the most important news, reviews and deals in mobile tech delivered straight to your inbox
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