Apple supplier Luxshare is exploring the possibility of shifting production to the United States in response to the escalating trade war and new U.S. tariffs, according to chairwoman Wang Laichun. The move reflects a broader trend among global manufacturers looking to mitigate exposure to rising duties on Chinese exports.
Wang, speaking on a call with analysts Wednesday, said the newly imposed tariffs would have a limited near-term impact on profits due to the company's relatively low volume of finished goods exported directly to the U.S. Still, she acknowledged the strategic need to diversify production away from China.
"If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localised to meet the needs of the U.S. market," Wang said, according to a transcript seen by Reuters.
Luxshare, a key supplier to Apple, manufactures iPhones, AirPods, and Apple Watches, though Wang did not directly name any clients on the call. The company has been fielding customer inquiries about potential North American manufacturing, particularly for product lines that are highly automated.
Wang emphasized that any expansion into new geographies would involve careful consideration of long-term risks and development prospects. She said building and activating a production line in an existing location would take between 12 to 18 months.
Luxshare has manufacturing and R&D sites in Malaysia, Thailand, Vietnam, Mexico, and the U.S., in addition to its main operations in China. While Vietnam has become a favored alternative for Chinese exporters, it now faces a 46% U.S. tariff-higher than the 36% rate on Thai goods and 24% on Malaysian products. The Vietnamese government is reportedly negotiating with Washington over the tariff levels.
Wang said production would likely remain in Vietnam unless the tariff gap with other countries widened further. Luxshare is not currently planning expansion in India but could reconsider if pushed by customers.
