Kirkland Capital Chairman and CEO Kirk Yang said on CNBC’s “Squawk Box Asia” on Friday:
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More mainland Chinese electronics manufacturers are looking to take market share from their Taiwanese counterparts. Foxconn When Pegatronsaid the investment fund manager.
Kirkland Capital Chairman and CEO Kirk Yang said on CNBC’s “Squawk Box Asia” on Friday:
“So eventually more and more Chinese companies will take market share from Taiwanese electronics companies,” Yang added.
appleThe largest supplier, Foxconn, also known as Hon Hai, is facing competition from China’s Luxshare, which has reportedly won a contract to produce premium iPhone models in China.
This comes after Foxconn posted record unaudited earnings in 2022 and reported that output at its Chinese iPhone factories was “basically back to normal.”
Luxshare is producing iPhone 14 Pro Max models in small batches at its Kunshan factory, the Financial Times reported. That’s because Foxconn’s Zhengzhou factory faced Covid restrictions and labor unrest last year.
Founded in 2004 by former Foxconn employees, Luxshare makes connector cables for iPhones and MacBooks, and also makes AirPods.
Yang added that mainland Taiwanese companies have come under a lot of pressure over the past five years due to geopolitical tensions between China and Taiwan. “Many of them leave China,” Yang said.
As such, Apple needs to diversify, he said, adding that the tech war between the United States and China is causing the company to leave mainland China even more quickly.
Additionally, Chinese companies such as Luxshare have an edge in Hong Kong, Yang said.
“They could probably hire people [more easily than non-Chinese companies] You can get better tax benefits. After local businesses learn how to make products of equal quality at a lower price, they will gain market share.”
In mid-2021, Nikkei Asia reported that mainland China has overtaken Taiwan as Apple’s largest supplier.
