⁍ Luxshare is little-known internationally but is poised to become the first mainland China-headquartered firm to assemble iPhones.

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⁍ The company’s chairwoman was once a worker at Taiwanese Apple supplier Foxlink 2392.TW.

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⁍ Foxconn told Reuters in a statement the task force described in this story is ‘not grounded in facts’ and there were ‘no meetings or any other contact

– Apple’s biggest assembler is fighting back against a growing rival in China, insiders say. Three sources tell Reuters that Foxconn founder Terry Gou has set up a task force to combat Luxshare, a Dongguan-based firm that is poised to become the first mainland China-headquartered firm to assemble iPhones. Luxshare, whose chairwoman was once a worker at Taiwanese Apple supplier Foxlink, acquired two smaller factories belonging to Taiwanese iPhone assembler Wistron in China in July. Previously, Luxshare was best known for making Apple’s AirPods. One of the sources called it a ‘formidable opponent’ and said Foxconn has been conducting extensive research on Luxshare, aiming to ‘defeat it completely.’ Luxshare is little-known internationally but is poised to become the first mainland China-headquartered firm to assemble iPhones—a turf until now dominated by Taiwanese manufacturers. The task force, which the sources say was created last year, has been looking into Luxshare’s technology, expansion plan, hiring strategy, and whether the company—which currently makes only 5% of Foxconn’s revenue—is supported by any Chinese government entity. While the US-China trade war and the coronavirus crisis have intensified pressure on global supply chains, an increasingly acrimonious tech feud between the economic giants has also prompted Beijing to strengthen efforts on creating world-leading local tech firms—and Luxshare’s growth trajectory fits into that mould. “It makes sense for China to build up its own supply chain and Luxshare is in line with that state policy,” one source says.