Apple Supplier Luxshare Weighs U.S. Manufacturing as Tariffs Hit

Luxshare, a key Apple supplier known for assembling iPhones and producing AirPods, is discussing options with customers to navigate new U.S. tariffs by moving more production outside China, including to the United States. The company's chairwoman, Wang Laichun, shared these insights during a Wednesday telephone call with analysts, shedding light on how global manufacturers are responding to President Donald Trump's tariffs, which took effect the same day.

In a transcript of the call reviewed by Reuters, Wang emphasized that the tariffs would minimally affect Luxshare's profits and revenue, given its limited exports of finished goods to the U.S. market. Still, the company is weighing significant adjustments. She noted that Luxshare might scale back some investment plans in China while exploring increased production abroad. "If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localized to meet the needs of the U.S. market," Wang said.

Luxshare has already fielded inquiries from customers about providing services in North America, particularly for highly automated production. Wang indicated the company would require assurances from clients before committing. "For this step, we will also weigh some long-term development and safety considerations," she added during the call, which lasted over an hour.




The supplier operates factories and research centers beyond China, with facilities in Malaysia, Thailand, Vietnam, the U.S., and Mexico. Wang hinted at potential expansion in Southeast Asia, though she didn't specify locations. Vietnam, a growing hub for manufacturers like Luxshare, faces a steep 46% tariff—higher than Thailand's 36% and Malaysia's 24%. Wang noted that Vietnam's mature infrastructure and talent pool make it a stable production base unless tariffs exceed those of rival nations by 10% or more.

While Luxshare isn't currently planning to expand into India, Wang said the company would consider it if customers pushed for it. Setting up new production lines in existing factory locations, she explained, typically takes one to one-and-a-half years. Beyond Apple, Luxshare produces a range of electronics, including routers, wireless charging modules, and video conferencing gear.

On the financial side, Wang addressed how tariffs might ripple through the supply chain. "To date, all hardware manufacturers do not foot the bill for tariffs or logistics warehousing," she said, suggesting this pattern would likely hold. However, she acknowledged customer pressure for lower prices, noting that collaboration with suppliers to boost competitiveness has always been standard practice.


Neither Luxshare nor Apple immediately responded to requests for further comment. Wang avoided naming Apple or other clients during the call, consistent with suppliers' typical discretion regarding the tech giant, which faces significant exposure to the new tariffs. For now, Luxshare's deliberations highlight the complex balancing act Apple's supply chain must perform as trade policies shift.

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