Report: First major Apple manufacturer wants to come to the USA
Luxshare ICT is planning to circumvent the Trump tariffs with new factories in the USA – primarily for Apple. The question is how quickly this will happen.
Luxshare ICT building: Responsible for Apple's AirPods and Vision Pro, among other things.
(Image: Luxshare ICT)
Following the US government's tariff confusion – which, however, wants to maintain tough “tariffs” for China – Apple has apparently managed to convince a well-known manufacturer to set up factories in the USA. The company Luxshare ICT from China, which manufactures the Vision Pro for Apple and also works for the company in Vietnam, wants to relocate more production outside China, including the USA. Wang Laichun, Chairwoman of the Supervisory Board, announced this to analysts, as reported by Reuters.
Manufacturer needs guarantees
“If there is a commercial guarantee, and we can make a good assessment of the situation, we do not rule out the possibility of localizing some products to meet the needs of the US market,” Wang said. In practice, this means that the US government would have to make an effort to attract Luxshare ICT – and there may also be purchase guarantees. The company assumes that production involves a significant degree of automation – much more than in Asia.
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It is also about “long-term development and safety precautions”. This means that Luxshare ICT does not want to fall into the trap of being confronted with new punitive tariffs. The company is currently based in China, Malaysia, Vietnam, Thailand and Mexico, but there are also smaller sites in the United States. Luxshare ICT manufactures iPhones for Apple in India and AirPods in Vietnam, as far as is known. Vietnam is currently trying to negotiate down the 46% tariff imposed by the US government. Thailand only pays 36 percent, Malaysia 24 percent.
Automation is important
The speed with which such factories can be set up in the USA is likely to be measured in years. Nevertheless, the Trump administration is putting pressure on China, which recently imposed a full 125% tariff on – following its tariff surcharge –. Before the deadline expired, Apple tried to import as many devices as possible under the old conditions.
In countries such as Vietnam, it is said to have taken between one and one and a half years to set up a new Luxshare ICT production facility, albeit with help from the surrounding regions. The question is whether something like this can be replicated in the USA.
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