Luxshare to acquire Pegaglobe iPhone assembly plant
Chinese iPhone contractor Luxshare will take a controlling stake in Pegatron's Pegaglobe factory in Kunshan. The move will make Luxshare the world's second-largest iPhone assembler after Foxconn.
Taiwan-based Pegatron confirmed that Luxshare will invest USD 296 million into the Kunshan plant and, as a result, Pegatron's stake will drop from 100% to 37.5%.
The acquisition is further proof of Luxshare's aggressive strategy in smartphone assembly. In July 2020, Luxshare’s subsidiary, Lizhen Precision (Jiangsu), acquired Wistron Investment (Jiangsu) and Wistron InfoComm Manufacturing (Kunshan) for USD 467 million.
And more recently, Luxshare completed a deal to acquire Chinese assembly and test facilities from the US wireless RF and power semiconductor specialist Qorvo.
The purchase of Pegaglobe appears to have the approval off Apple, which has been cultivating Chinese suppliers in a general charm offensive with Beijing; the Greater China region accounts for about 20 per cent of its total sales. Luxshare currently makes a range of products for Apple, including iPhones, iPod, Apple Watch and the mixed-reality headset Vision Pro.