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  • Taiwan’s Foxconn seeks chip, EV cooperation with India

    Taiwan’s Foxconn seeks chip, EV cooperation with India

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    Employees work in a factory at the mobile phone plant of Rising Stars Mobile India Pvt., a unit of Foxconn in Tamil Nadu, India on July 12, 2019.

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    Major Apple supplier Foxconn said on Saturday it was seeking cooperation in India in new areas like chips and electric vehicles after a visit to the country by its chairman, Liu Young-way.

    Apple has been shifting production away from China after the country’s strict Covid-19 restrictions disrupted the manufacturing of new-model iPhones and other devices, and amid tensions between Beijing and Washington.

    In January, India’s trade minister said Apple, which began iPhone assembly in the country in 2017 through Wistron and later Foxconn, wants India to account for up to 25% of its production from about 5% to 7% currently.

    Taiwan’s Foxconn, the world’s largest contract electronics maker and formally called Hon Hai Precision Industry, said Liu had visited India from Feb. 27 to Saturday.

    “My trip this week supported Foxconn’s efforts to deepen partnerships, meet old friends and make new ones, and seek cooperation in new areas such as semiconductor development and electric vehicles,” Liu said in a statement.

    Foxconn has ambitious plans to make EVs, and is also looking to make chips.

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    “On the basis to share, collaborate and thrive together, Foxconn will continue to communicate with local governments to seek the most beneficial development opportunities for the company and all stakeholders,” Liu added.

    He did not mention any new concrete investment plans in the country, and Foxconn has not announced any since his trip.

    Apple’s iPhones will soon be assembled at another site in the southern Indian state of Karnataka, and 300 acres (120 hectares) have been aside to set up a factory, the state government said on Friday.

    Currently, iPhones are assembled in India by at least three of Apple’s global suppliers — Foxconn and Pegatron in Tamil Nadu, and Wistron in Karnataka.

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  • More mainland Chinese firms will take away market share from Taiwan iPhone suppliers: Investment firm

    More mainland Chinese firms will take away market share from Taiwan iPhone suppliers: Investment firm

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    “Chinese companies are getting pretty competitive for iPhone assemblers. China is doing quite well in pretty much everything, except semiconductors,” Kirk Yang, chairman and CEO of Kirkland Capital, told CNBC’s “Squawk Box Asia” Friday.

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    More mainland Chinese electronics manufacturing companies are set to take away market share from Taiwanese counterparts such as Foxconn and Pegatron, an investment fund manager said.

    “Chinese companies are getting pretty competitive for iPhone assemblers. China is doing quite well in pretty much everything, except semiconductors,” Kirk Yang, chairman and CEO of Kirkland Capital, told CNBC’s “Squawk Box Asia” Friday.

    “So that’s why eventually, you are going to see more and more Chinese companies taking market share away from Taiwanese electronic companies,” Yang added.

    Apple‘s largest supplier Foxconn, also known as Hon Hai, is facing competition from China’s Luxshare, which was reportedly awarded a contract to produce premium iPhone models in China.

    That comes after Foxconn posted record unaudited revenue in 2022 and reported that output at its iPhone plant in China had “basically returned to normal.”

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    Luxshare has been producing a small quantity of the iPhone 14 Pro Max model at its Kunshan plant, the Financial Times reported, as Foxconn’s Zhengzhou factory faced Covid restrictions and labor unrest last year.

    Founded in 2004 by a former Foxconn worker, Luxshare makes connector cables for the iPhone and MacBook, and also manufactures AirPods.

    Yang added that with China-Taiwan geopolitical tensions, Taiwanese companies on the mainland have seen a lot of pressure in the last five years. “A lot of them are moving out of China,” Yang said.

    That’s why Apple has to diversify, he said, adding that the U.S.-China tech war is also prompting companies to move even faster out of mainland China.

    Furthermore, Chinese companies such as Luxshare have the Hong Kong advantage, Yang said.

    “They can probably hire people [more easily than non-Chinese companies] and get better tax incentives. After local companies learn how to make products in a similar quality, at a cheaper price, they will be taking market share.”

    In mid-2021, Nikkei Asia reported that mainland China overtook Taiwan to become Apple’s biggest source of suppliers.

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