Apple supplier Luxshare chairman Wang Laichun said in a phone conference with analysts on Wednesday (April 9) that the company is in discussions with clients considering transferring more production capacity out of China, possibly to the United States, to comply with the new tariffs implemented by the Trump administration.
According to Reuters, the Chinese company responsible for assembling iPhones and producing AirPods revealed that while exports to the U.S. currently account for a low percentage and have limited impact on revenue and profits, the company still needs to adjust its layout, increase overseas investments, and may even postpone some expansion plans in China.
Wang Laichun stated, “If there is a business guarantee, after evaluation, we do not rule out local production to meet the demands of the U.S. market.” She also disclosed that Luxshare has informed some clients that they must provide corresponding guarantees if they need to offer highly automated product services, but the company will still consider long-term development and safety factors.
Luxshare and Apple have not responded to media queries. Due to the impact of U.S. tariff policies on Apple, its suppliers have always discreetly responded.
In addition to China, Luxshare also has factories and research centers in Malaysia, Thailand, Vietnam, the United States, and Mexico, producing not only for Apple but also for electronic products such as routers, wireless charging modules, and video equipment.
Wang Laichun mentioned that Luxshare is considering increasing investments in Southeast Asia, but the specific locations have not been determined. She stated that Vietnam has a mature industrial base and workforce. Even though its tariffs are 10% higher than other regions, production bases are not easily moved. Currently, Vietnam is subject to a 46% tariff by the U.S., much higher than Thailand’s 36% and Malaysia’s 24%. The Vietnamese government has begun negotiations with Washington on this issue.
Regarding expansion to India, Wang Laichun stated that there are currently no plans, but if clients make specific requests, Luxshare will evaluate the possibilities. She added that if new production lines are built at existing factory locations, it would take approximately one to one and a half years from start to production.
Addressing the issue of tariff cost burden, Wang Laichun remarked, “So far, all hardware manufacturers have never borne tariffs or logistics costs on their own, and it is unlikely to change in the future.” However, she admitted that clients may request price reductions due to tariff needs, as “suppliers and clients have always cooperated to enhance competitiveness.”
U.S. President Donald Trump has successively imposed waves of global tariffs. After China announced retaliatory tariffs against the U.S. on Wednesday, Trump immediately announced an increase in tariffs on Chinese goods to 125%, which took immediate effect. At the same time, he also declared a halt on equivalent tariffs for countries that have not taken retaliatory actions against the U.S. for 90 days, also effective immediately.
As the U.S.-China trade war escalates rapidly, Apple iPhones produced in large quantities in China have become a focal point of attention. On Tuesday, White House spokesperson Karoline Leavitt stated that President Trump did consider having products like the iPhone manufactured in the United States. She mentioned that Trump “absolutely” believes that technologies such as iPhones can be shifted to production in the U.S.