Foxconn rival Luxshare acquires Wistron's iPhone plant

Beijing, July 18 AirPods supplier Luxshare has acquired a factory from iPhone supplier Wistron for $471.5 million and would start making iPhones in Kushan, Jiangsu province in China, the media reported.

The acquisition by Luxshare as its first iPhone assembly plant will pave the way for the company to move up the Apple supply chain and challenge Taiwanese rival Foxconn, which has long dominated iPhone production, reports Nikkei Asian Review.

The deal will be completed by the end of this year, pending approval from the authorities.

According to the report citing sources, the acquisition "is with Apple's consent and it is part of Apple's plan".

Luxshare will start to do iPhone assembly in China, while Wistron will focus on iPhone manufacturing in India.

Apple has been assembling some of its phones in India for a while via its two manufacturer partners - Foxconn and Wistron. Wistron assembles new iPhone SE while Foxconn makes iPhone XR in the country.

Luxshare, founded by former Foxconn production line worker Grace Wang in 2004, is a fast-rising Chinese tech manufacturer.

It has been an Apple supplier since 2013, making cables and connectors as well as AirPods and Apple Watch.

Earlier, Luxshare was in talks with Catcher Technology, a company that produces metal cases and frames for the iPhone. However, Catcher Technology's price proved to be too steep, forcing Luxshare to abandon the deal.

( With inputs from IANS )