Analysis institutions pointed out that Luxshare Precision, an iPhone foundry in mainland China, has secured 20% of iPhone orders in 2023 and is expected to achieve 40% of iPhone orders this year, which means that the three Taiwanese foundries that have shifted their production lines are rapidly losing orders.

Taiwan's Wistron was the first iPhone foundry to disappear. Before 2020, Wistron had secured more than 20% of iPhone orders, but then it believed in Apple's promise and resolutely sold its iPhone foundry in mainland China, immediately investing heavily in India.

Wistron's decisiveness also made it the first to disappear. It set up a factory in India for only 2 years, developing only 10,000 employees, while its foundry in mainland China once employed 80,000 employees at its peak. However, this small-scale Indian factory was forcibly acquired by Tata in 2022, and in 2023, Apple only allocated 1% of iPhone orders to Wistron, and Wistron almost lost its iPhone manufacturing business.

Pegatron may be the next. Pegatron was once regarded by Apple as a foundry to counterbalance Foxconn, and Pegatron also rapidly expanded with the help of Chinese manufacturing. It has established 5 factories in Suzhou, Shanghai, and Chongqing in China to manufacture iPhones. It has also set up factories in India, but in 2023, the powerful Tata has extended an olive branch to Pegatron, and Pegatron's Indian factory is likely to be acquired by Tata.

Foxconn is the largest foundry investing in India. Although Indian conglomerates have not yet slashed Foxconn, the experiences of Wistron and Pegatron have led Foxconn to continuously revise its investment in India. It had tried to increase the number of employees in Indian factories to 70,000 in three years, but later reduced it to 50,000. Its plan to invest in building a chip factory in India has also been scrapped. The involvement in India has led to a continuous decline in its iPhone orders.

These three Taiwanese foundries have suffered setbacks, and mainland Chinese foundries Luxshare Precision and BYD have taken the opportunity to take over iPhone orders. Among them, Luxshare Precision is the biggest winner, securing more than 20% of iPhone orders in 2023 and manufacturing iPhone 15 Pro max, iPhone 15, and iPhone 15 Plus.

Luxshare obtained iPhone orders by acquiring Wistron's factories. Currently, it is rumored that Luxshare Precision may acquire Pegatron's Kunshan factory. If the goal is achieved, it will likely receive 40% of iPhone orders, becoming the second-largest iPhone foundry after Foxconn.

Apple has no choice but to give more iPhone orders to Luxshare Precision. Apple tried to diversify its orders to India and Vietnam, but the greed of Indian conglomerates scared Apple. The Indian conglomerates not only intervened in iPhone manufacturing but also strongly cooperated with Apple to build iPhone retail stores in India, which displeased Apple. Vietnam, on the other hand, due to power shortages, required Foxconn, Samsung, and others to reduce power consumption by 30%. Unable to do anything, Apple had to transfer more orders back to Chinese manufacturing to ensure the supply of iPhones.

From the situation in recent years, Vietnam and India cannot compare with Chinese manufacturing in terms of flexible capacity. The iPhones manufactured in the fourth quarter of each year are 60% more than in other quarters, and this sudden increase in capacity has always been borne by Chinese manufacturing. The lack of industrial chains, factories unable to operate 24 hours a day, inefficient logistics, and other issues in Vietnam and India have caused difficulties for Apple, making it clear the unique advantages of Chinese manufacturing.

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