OEM Pegatron (4938-TW) Announced that its subsidiary Kaisheng will attract capital from Luxshare to jointly establish a joint venture in the metal chassis business, creating the largest cross-strait Apple supply chain cooperation case. Vigorously accelerating the layout of India has put Taiwanese factories facing the test of choice under Apple’s light and investment interests.
Taiwan’s Apple’s supply chain made major moves last year to adjust operations. In July, Wistron (3231-TW) First shot and declaredRMB 3.3 billion yuan (aboutNew Taiwan Dollar 13.8 billion yuan) sold its Kunshan iPhone assembly plant to China Luxshare Group, the chassis factory can become (2474-TW) Was held in August, announcing that the price of 1.427 billionUSD (approximatelyNew Taiwan Dollar (41.929 billion yuan) sold the Taizhou plant to Lens Technology. The two major sales cases highlight the ebb and flow of the Apple supply chain between Taiwan and China.
Coincidentally, when Wistron announced that it would sell the factory to Luxshare, the market reported that Luxshare intends to purchase a metal chassis factory again. Named Kecheng and Kaisheng are all options for Luxshare to actively build a one-stop Apple supply chain. However, after Lansi grabbed his relatives, Pegatron announced in the same month that it would privatize Kaisheng for RMB 14.5 billion, breaking rumors.
After Pegatron announced the privatization of Kaisheng’s press conference, Pegatron Chairman Tong Zixian, and vice chairman and Kaisheng Chairman Cheng Jianzhong went to the fire to explain the purpose and considerations of the privatization. Cheng Jianzhong said at the time that the group will reorganize And the purpose is to integrate resources and increase operational flexibility. The possibility of reselling equipment or various other cooperation in the future has not been ruled out, laying the groundwork for this cooperation between Pegatron and Luxshare.
After half a year, Wistron Kunshan Plant and Catcher Taizhou Plant both completed the delivery. Pegatron also completed the privatization of Kaisheng ahead of schedule in mid-January. In less than a week, Pegatron announced by Chongxun that it would increase its cash capital. Kai Sheng Sun Company, Japan Kai, and introduced Luxshare toRMBAbout 6 billion yuan (aboutNew Taiwan Dollar (26 billion yuan) will be fully subscribed. At that time, Nikko will become a joint venture between Pegatron and Luxshare, and will be led by Luxshare.
Pegatron emphasized that this cooperation is in line with the trend of “manufacturing locally, supplying locally”. There are not only competition but also partnerships in the industry. There are many ways to dispose of assets and use resources. Selling the business is only one option. Pegatron chose this time. It is the way to “select partners carefully and continue active operations.”
Under the global trade war, it is observed that Apple’s supply chain layout in recent years has moved toward a dual-track approach. In addition to major moves requiring Taiwanese factories to transfer their supply chains to India to set up factories, they also actively support China’s local supply chain. The market is produced by Luxshare, Lansi, etc., and the global market is given to Hon Hai (2317-TW), Pegatron and Wistron are responsible for production in India.
Thinking from the perspective of Luxshare, we must have thought about serving the Chinese market locally in the past. However, with the tense US-China relations in recent years and the pressure from its major customer Apple, it has changed from “thinking” to being compelled to do. Think recently has frequent large-scale plant expansion and acquisition plans.
For Taiwanese factories, behind Apple’s past, they faced generations of large-scale equipment update and amortization pressures. If the sales of this generation of products are not as expected, they will face a new generation of equipment investment, which poses financial and operational burdens. Will become bigger and bigger, and the gross profit of consumer product assembly OEMs is not high, which may drag down the operation. Therefore, in terms of benefit assessment, timely adjust business strategies and find the most beneficial way for operations, whether it is selling factories or The alliance has become the most important issue and challenge in the Apple supply chain of Taiwanese factories.
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