What you need to know
- Luxshare is raising funds to build a production line aimed at wearables.
- The company is raising $13.5 billion to fund six new projects.
- If built, it could support the production of the Apple Watch.
One of Apple's suppliers might hop the iPhone fence to also get into the Apple Watch game.
As reported by Reuters, Luxshare Precision Industry has announced that it is looking to raise up to $13.5 billion to fund six new projects, including building a production line to support the manufacturing of wearable devices.
The company plans to issue up to 2.1 billion shares to up to 35 investors at a price that will be disclosed at a later stage, Luxshare said in a filing to the Shenzhen stock exchange.The move came as Luxshare pushed to "improve the company's production capacity in downstream applications such as consumer electronics and smart vehicles," it said in the filing.The six projects included the construction of production lines of smart wearable devices, smart mobile terminal precision components, and high-voltage connection systems for new energy vehicles, according to its filing.
Luxshare has been growing its relationship with Apple since its founding in 2004. Over the years, the company has made parts for the iPhone and MacBook. After a while, it also began manufacturing AirPods and eventually also got into iPhone production when it acquired two iPhone assembly plants from the Wistron Corp.
If the company sets up this production line, Luxshare could also become a supply chain partner for the Apple Watch.
Bottom line: I love the Apple Watch Series 7, and its small upgrades make for a big difference on most previous models.
