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Supply Chain

China's Luxshare builds iPhone mega-plant to challenge Foxconn

Chinese assembler makes aggressive bid to expand in Apple supply chain

With the facility it is building in eastern China, Luxshare aims to assemble millions of iPhones as early as next year. (Photo by Shunsuke Tabeta) 

TAIPEI/KUNSHAN, China -- Luxshare Precision Industry is building a massive manufacturing complex in eastern China as it aims -- with Apple's blessing -- to break the decadelong hold that Taiwanese rivals Foxconn and Pegatron have on iPhone assembly.

Luxshare, China's most prominent player in the Apple supply chain, is building a 285,000 sq. meter manufacturing park in Kunshan, Jiangsu Province, with a total investment of 11 billion yuan ($1.72 billion). The sprawling site -- covering an area the size of 40 football fields -- will churn out millions of iPhones as early as next year.

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