LUXSHARE Precision Industry Co., a Shenzhen-based prominent player in the Apple supply chain, saw its shares jump yesterday following news it is building a new iPhone-assembly plant in an eastern China city.

Luxshare Precision’s Shenzhen-listed shares jumped as much as 8,02 percent in midday trading before retreating to close the day up 5.03 percent at 47.80 yuan (US$7.50).

The Nikkei reported that Luxshare Precision is constructing a 285,000-square-meter manufacturing park in Kunshan, eastern China’s Jiangsu Province, with an investment of 11 billion yuan, challenging the dominance of Taiwanese rivals Foxconn Technology Group and Pegatron Corp. in the smartphone manufacturing business.

The facility is set to complete the first phase of the new complex in the middle of 2022 and plans to begin producing iPhones then, according to the Nikkei.

Armed with the new facility, Luxshare Precision aims to significantly increase its share of iPhone assembly, from about 6.5 million units in 2021 to between 12 million and 15 million units by as early as next year, the Nikkei quoted unnamed sources as saying. The firm currently builds iPhones in another facility in Kunshan that it bought from Taiwan-based Wistron last year.

Shanghai-listed Wingtech Technology Co., another rising Chinese tech manufacturing powerhouse, also recently entered Apple Inc.’s supply chain and won orders to make the Mac mini and Apple TV, the Nikkei also reported, citing unnamed sources. (SD-Agencies)