Luxshare, an Apple supplier, is discussing with customers how to respond to U.S. tariffs. The company is considering shifting more production outside of China, potentially including the United States. Chairwoman Wang Laichun shared this information with analysts during a telephone call on Wednesday.
Wang’s remarks offer a glimpse into the deliberations of companies globally. These companies are scrambling to address President Trump’s tariffs, which took effect on Wednesday.
Wang stated that the tariffs would have little impact on Luxshare’s profits and revenue. She said this is because Luxshare exports only a small amount of finished products to the United States.
However, the company needed to consider more investment abroad. They were also considering idling some investment plans in China, she said during the call that stretched more than an hour.
Wang stated, “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.”
Luxshare informed some customers that it would need guarantees. These guarantees were in response to customer inquiries regarding providing services in North America for products made with a significant degree of automation, she said.
Wang stated, “But for this step, we will also weigh some long-term development and safety considerations.”
Apple suppliers typically do not comment publicly on Apple. Wang did not identify Apple or any other customers during the call.
Luxshare has production bases and research centers in Malaysia, Thailand, Vietnam, the United States and Mexico, in addition to factories in China. Luxshare designs and makes electronic devices such as routers, wireless charging modules and video conferencing equipment.
Wang stated that Luxshare was considering greater investment in Southeast Asia. She did not specify where.
She stated that production of consumer electronics is unlikely to move away from Vietnam. This is unless the tariffs it faced were 10% greater than those on products from other countries, since its industrial infrastructure and talent pool were relatively mature.
Vietnam was hit with a hefty 46% tariff. In comparison, Thailand faced a 36% tariff, and Malaysia faced a 24% tariff.
The Vietnamese government is negotiating with Washington over the tariffs.
Wang said Luxshare was not considering expanding into India. However, they would consider doing so if customers made special requests.
Wang stated that the company needed 1 to 1-1/2 years to build and start up a new production line. This would apply to places where it already had a factory.
When asked if tariffs would be borne jointly by businesses in the supply chain and end consumers, Wang said:
“To date, all hardware manufacturers do not foot the bill for tariffs or logistics warehousing … Nothing like this has ever happened and I think it will be the same in future.”
She acknowledged concerns that customers would seek lower prices due to the tariffs. Wang added, “Customers have always collaborated with suppliers on how to enhance competitiveness.”
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