Luxshare, a key supplier for Apple, is exploring the possibility of moving some production outside of China, including to the United States, in response to the tariffs imposed during the Trump administration, according to a new report from Reuters.
Luxshare co-founder Wang Laichun discussed the company’s strategy during a call with analysts on Wednesday. Wang clarified that Trump’s tariffs are unlikely to significantly impact Luxshare’s profits or revenue, noting that the company exports only a small portion of its finished products to the U.S.
Currently, Luxshare operates factories and research centers in China, Malaysia, Thailand, Vietnam, and the U.S. The company is responsible for assembling certain iPhone models and producing AirPods and Apple Watches.
“If there is a commercial guarantee and we can properly evaluate the situation, we do not rule out localizing some production to meet the needs of the U.S. market,” Wang stated. However, she emphasized that any investment in North America would depend on “long-term development and safety considerations” and would focus on products made with a high degree of automation. Additionally, Luxshare is considering further investment in Southeast Asia. Wang noted that establishing a new production line in a location where the company already has a factory would typically take between one and one-and-a-half years.
When asked whether the tariffs would be shared by businesses in the supply chain and consumers, Wang responded, “So far, no hardware manufacturer has been responsible for the tariffs or logistics warehousing costs… I believe this will remain the same in the future.”
She did acknowledge that customers may seek lower prices due to the tariffs, adding that “customers have always worked with suppliers to improve competitiveness.”
Luxshare’s statements regarding production shifts in response to U.S. tariffs remain vague, and it’s unclear what concrete plans the company has. The remarks seem to be aimed at appeasing U.S. interests by suggesting the potential for production moves, though no specific commitments have been made. Notably, the company appears focused on moving production requiring “a significant degree of automation” to the U.S., which would not result in the large-scale job creation that some may expect from the tariffs.
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