Foxconn has setup a task force to look into the growth of Luxshare. A report mentions that Foxconn believes that Luxshare poses a threat to its presence
Foxconn has setup a task force to fend off the growing clout of Chinese electronics manufacturer Luxshare inducates a report published by the Reuters. Dongguan-based Luxshare, as per the report, is set to become mainland China’s first company to assemble Apple’s iPhones.
It has been a year that the task force, setup by Foxconn’s founder Terry Gou, has been gathering info about Luxshare’s strategy, its prowess in terms of technology and expansion plans. The task force is also trying to find out whether Luxshare has any links with any Chinese government agency (ies).
Luxshare chairwoman worked at Apple’s supplier Foxlink
Luxshare, better known for assembling airpods for Apple, had recently acquired two Wistron facilities. It s to be noted here that Luxshare’s chairwoman once worked for Apple’s supplier Foxlink. According to the sources that the Reuters quoted, Foxconn is trying its best to defeat Luxshare.
A look at the public records reveal that a minority stake in the company is owned by Chinese investment company Central Huijin Investment Ltd. The cheery on the cake, this investment company is owned by the state. The majority stakes are however owned by siblings Grace Wang and Wang Laisheng.
Luxshare, apart from this minority stake, has also been graced with subsidies of over $148.80 million by the government of China. This amount was calculated by the Reuters.
Foxconn, on being approached by the Reuters, noted that nothing as such a task force exists. The report also suggests that Luxshare had made generous offers to Foxconn’s leadership to shift their family’s location from Taiwan to China.