Luxshare, a key supplier for Apple, is currently engaged in discussions with its clients regarding strategies to adapt to US tariffs by relocating a portion of its production outside China, including potential operations in the United States. The chairwoman of the company, Wang Laichun, made these remarks during a recent conference call with analysts.
Wang’s comments shed light on the wider industry response to the tariffs imposed by President Donald Trump that became effective on Wednesday. Luxshare, known for assembling iPhones and manufacturing AirPods, is among many global firms reassessing their production strategies in light of these developments.
According to a transcript reviewed by Reuters, Wang stated that the impact of the tariffs on Luxshare’s profits and revenues would be minimal, noting that the company exports only a limited range of finished products to the United States.
However, Wang highlighted the necessity for Luxshare to explore increased investment abroad while potentially pausing some planned investments within China. She indicated that the company would not dismiss the idea of localizing some products to cater to the US market, provided there are commercial guarantees and thorough evaluations.
Wang indicated that some clients of Luxshare had requested such assurances regarding the potential for services in North America that would involve a high level of automation in production.
She emphasized that any such initiatives would require consideration of long-term developments and safety factors.
Typically, Apple suppliers refrain from commenting on the company, and Wang did not mention Apple or any specific customers during the call.
Luxshare has not responded to requests for additional comments, nor has Apple provided a statement on the matter.
In addition to its operations in China, Luxshare maintains production facilities and research centers in several countries, including Malaysia, Thailand, Vietnam, the United States, and Mexico.
Besides supplying Apple, Luxshare also designs and manufactures electronic devices such as routers, wireless charging modules, and video conferencing tools.
Wang revealed that the company is contemplating further investments in Southeast Asia but did not specify any locations.
She noted that moving electronics production out of Vietnam is unlikely unless tariffs imposed on those products are at least 10% higher than those on goods produced in other nations, due to Vietnam’s developed industrial infrastructure and skilled workforce.
Vietnam has faced a significant tariff of 46%, compared to 36% for Thailand and 24% for Malaysia. The Vietnamese government is currently in negotiations with Washington to address these tariffs.
While Luxshare is not actively pursuing expansion into India, Wang mentioned it would consider such moves if specific requests were made by clients.
She also pointed out that it would typically take the company about one to one and a half years to establish and begin operations of a new production line in regions where it already has existing factories.
When asked about the potential burden of tariffs on supply chain businesses and end consumers, Wang stated, “To date, all hardware manufacturers do not bear the cost of tariffs or logistics warehousing… This has never happened, and I believe it will remain the same in the future.”
Nonetheless, she acknowledged that there is concern among customers regarding the need for lower prices due to the tariffs, adding, “Customers have consistently collaborated with suppliers to enhance competitiveness.”
© Thomson Reuters 2025
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