Apple Supplier Luxshare Considers Production In The US To Face Import Tariffs

JAKARTA Apple's founder, Luxshare, is in discussions with customers to respond to the new United States tariff. Merteka is considering relocating part of production outside China, including to the United States. This was conveyed by Luxshare Chairman Wang Laichun in a conference call with analysts on Wednesday.

The move reflects the global company's response to the import rates imposed by US President Donald Trump from that day on.

According to Wang, the impact of tariffs on the company's profit and income is relatively small because Luxshare only exports a small portion of its products to the US. However, the company still needs to consider investment abroad and suspend some investment plans in China.

"If there are good commercial and evaluation guarantees, we do not rule out local production to meet the needs of the US market," Wang said.

Luxshare has told some customers that they need certain guarantees if they have to provide services in North America, especially for products that can be made with high-level automation.

However, Wang stressed that the move should consider long-term development and security factors.

Although he did not explicitly mention Apple's name, Wang's statement raised concerns from Apple's suppliers about the potential tariff impact on their supply chain.

Luxshare has factories and research centers in Malaysia, Thailand, Vietnam, the United States, and Mexico, apart from China. They not only supply products to Apple, but also produce electronic devices such as routers, wireless charging modules, and video conferencing equipment.

Wang said his party was also considering larger investments in Southeast Asia, although he had not yet detailed which countries were targeted.

Vietnam, as a major exporter to the US and one of the locations for the Luxshare expansion, is subject to a high tariff of 46%, compared to 36% for Thailand and 24% for Malaysia. The Vietnamese government is currently negotiating with Washington regarding the tariff.

Wang also stated that Luxshare has not planned an expansion into India, but could consider it if there is a special request from customers. The establishment and operation of new production lines in existing locations takes 1 to 1.5 years, he added.

"So far, no hardware manufacturer has covered tariff fees or warehousing logistics... It hasn't happened before, and I don't think it will happen in the future either," Wang said, when asked who would bear the costs due to this new tariff.

However, he acknowledged there were concerns that customers would ask for cheaper prices as a result of the tariff. "Restrictions always work with suppliers to increase competitiveness," Wang said.